Unexpected Salary Hike Error: How Should HR Handle This Sticky Situation?

Dear All,

For your kind suggestions and opinions:

"An employee who was due for an appraisal (salary hike) in the next month had their account credited with the revised salary amount in the current month itself by mistake. Meanwhile, a new joiner in the HR department has issued the increment letter to the employee, stating a salary hike from the next month. The employee has remained quiet about the entire situation and is enjoying the mistake, while the supervisor insists on deductions/adjustments to be made by the Accounts department for the next month's salary of the concerned employee."

What should HR do now?

Warm Regards,
Jyoti

Hi Jyothi,

Please send a message to the employee mentioning the mistake that occurred and deduct the related amount from next month's salary. It's imperative that you take immediate action without delay. Failure to address such issues promptly may result in future consequences.

Before processing the salary, personally and officially communicate with the employee.

Regards,
Manjunath

Hi,

In such a scenario, HR should send another letter to the concerned employee stating that as mentioned in the previous letter, you are eligible for the increment effective from (mention the date). However, it appears that due to an oversight or mistake, your salary has been credited with the revised calculation for this month only. We will be deducting the excess amount paid to you from next month's salary. Please note that you will continue to receive the performance increment as stated in the letter, but it will be effective from the specified date only. The letter should be copied to the Accounts department as well.

Regards,
Anand

Dear Jyothi,

In such a scenario, the HR should immediately inform the employee concerned of the mistake that has been committed erroneously and tell him that the amount so credited will be debited from his next month's salary. As advised by Manjunatha, the same should be communicated both personally and officially, with a copy marked to the Accounts department. If this is not done, it will be a matter of serious concern in the near future.

Regards,
Julie

Hi Jyothi,

You should communicate with the employee personally first regarding the mistake in the payroll. Then, you should issue him the letter stating the effective date of the increment. After that, inform the employee officially that the excess amount will be deducted from the next month's salary and send a copy to the accounts department for information.

Regards,

Kiran.N