Hi, I have query regarding the salary component... i would like to understand the component "Arrears" and what basicly comes under it??
From India, Bengaluru
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From India, Bengaluru
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Arrears can be said, payment of amount which is due to the employee consequent to the revision of wages which has retrospective effect or error in computation which is paid in subsequent month.
From India, Kochi
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8From India, Kochi
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Any amount pending to be paid to the employee of a previous period, paid in current period is known as arrears
From India, Ahmadabad
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From India, Ahmadabad
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Thank you so much for your reply. Just one more clarification: can I adjust the part of the salary that the company holds (i.e., 10 days' salary in my company) as arrears in the salary slip, which is paid when the employee leaves the company.
From India, Bengaluru
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From India, Bengaluru
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If the pay cycle is from 21st to 20th of next month then the rest 10 days are paid in the next pay cycle so in such case there is no arrear.
From India, Ahmadabad
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From India, Ahmadabad
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I think what the poster mentioned as "pay cycle" by way of clarification is actually the one-month wage period of the company commencing from the 21st of the previous month and ending with the 20th of the next month. If it is so, the entire salary for the month has to be disbursed within the next 7 or 10 days, as the case may be, i.e., by the last day of the month. The actual issue raised by the poster is withholding the 10 days' salary until the end of the next wage period and showing it as "arrears" in the payslip of the next month if the employees continue in the services of the company. This practice is illegal.
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From India, Salem
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Regards
From India, Salem
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Yes, sir. Since the pay cycle is designed for one month, i.e., from the 21st to the 20th of the next month, the remaining 10 days of the month cannot be treated as arrears since they will feature in the next pay cycle. Showing arrears of 10 days on the payslip every month is not logical to the best of my understanding.
Even when we have a pay cycle starting from the 26th of one month to the 25th of the next month, we treat the last 5 days as full attendance for every employee. If any employee is absent during this period, i.e., the last 5 days of the month, it is deducted or calculated as leave for the next pay cycle.
From India, Ahmadabad
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Even when we have a pay cycle starting from the 26th of one month to the 25th of the next month, we treat the last 5 days as full attendance for every employee. If any employee is absent during this period, i.e., the last 5 days of the month, it is deducted or calculated as leave for the next pay cycle.
From India, Ahmadabad
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Salary Break Up - Performance Pay.xls
SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx