Overpaid employee salary for 3 months - how to correct this error?

richa kumari1107
In our company, the salary offered to an employee was Rs.7000. By mistake we paid him Rs.9000 since last 3 months. Please suggest me any solution for this blunder. Kindly, suggest me best solution for this blunder. I am new to cite HR.
richa kumari1107
In our company,we offered Rs.7000 to an employee. But,by mistake we are paying him Rs.9000 since last 3 months. What to do now? Please suggest any best solution. If the director will come to know this blunder he may fire me immediately. I am scared.
Prashant B Ingawale
Talk to employee to whom you have paid extra. If he agrees to return money then automatically problem will be solved.
Venkata Vamsi Krishna Patnaik
Human beings do commit mistake, you can speak to your Director if he asks you on the same.
As suggested by Mr.Prashant kindly speak to the concerned employee as he can return it back. He has to accept it as his pay is informed to him and excess paid is by mistake.
Or else intimate him that company needs to deduct in his forthcoming salary.
gayatri p
You can talk to the concerned employee and clarify this with him in a transparent manner. You can tell him that this will be recovered from his salary.
You can recover this in installments so that he gets decent in hand salary in spite of the recovery.
Warm Regards,
Gayatri P
KK!HR
Dear : Adjustment of over-paid wages is a permissible deduction under Section 7(2) (f) of the Payment of Wages Act 1936, so you are within your rights to adjust the overpaid amount from the salary next due. Whether deduction is to be made in one go or in installments is to be decided on humane considerations and the employee shall be informed of it.
Arun.Marinor
There was a similar case wherein an employee who was on leave for one full month was paid that month's salary due to human error. When we discovered the mistake, we spoke to him and he readily gave a written application intimating the erroneous credit of salary and a request to recover it over the next 4 salary periods, which was of course accepted. The recovery is being shown in his salary slip.
umakanthan53
Since the employee falls within the purview of the Payment of Wages Act,1936 in terms of his salary range, I endorse the reply of our learned member KK!HR. Regarding recovery of the Over Payment in lumpsum or equated monthly instalments, care should be exercised while determining the instalment amount that the total amount of deductions in a wage period does not exceed the percentage prescribed u/s 7(3) of the Act.
Prashant B Ingawale
@ umakanthan53 Sir & KK!HR Sir,
If we get consent from the employee at the time of issue of advance that the total amount of Salary advance from the next wage cycle then can employer deduct all salary advance at a time? Though if it breaches the Section 7(3) under Payment of Wages Act?
KK!HR
Dear Prashant: The principle is, there cannot be any legally valid agreement to the contrary of law. As you say, it is in violation of Section of Section 7(3) of PWA. So it is not valid.
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