Dear friends,
I wanted to know if, by mistake, an employee is paid extra in the last payroll (e.g., he has been paid for 30 days when he was present only for 29), then how do we show the reversal of that surplus paid in the next salary slip considering that there has been an increment starting from the current month, i.e., after the last salary paid to him.
Under what salary component should it be reflected and how?
Regards,
Nitin
From India, Mormugao
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I wanted to know if, by mistake, an employee is paid extra in the last payroll (e.g., he has been paid for 30 days when he was present only for 29), then how do we show the reversal of that surplus paid in the next salary slip considering that there has been an increment starting from the current month, i.e., after the last salary paid to him.
Under what salary component should it be reflected and how?
Regards,
Nitin
From India, Mormugao
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Dear Nitin,
Option One:
Need to pay him salary for 29 days at the new rate & Difference of salary for one day. (The difference is paid because of the increment.) If the increment is not there, you can straight away pay 20 days' salary. The difference paid can be given as salary arrears, as all other components are at the new rate.
Option Two:
You could pay for 30 days in the current month and recover one day of extra pay. On the salary slip, that amount would appear as 'Salary Advance.'
Regards, Shobha
From India, Mumbai
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Option One:
Need to pay him salary for 29 days at the new rate & Difference of salary for one day. (The difference is paid because of the increment.) If the increment is not there, you can straight away pay 20 days' salary. The difference paid can be given as salary arrears, as all other components are at the new rate.
Option Two:
You could pay for 30 days in the current month and recover one day of extra pay. On the salary slip, that amount would appear as 'Salary Advance.'
Regards, Shobha
From India, Mumbai
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Dear NITIN,
There are many things to be taken into consideration while deducting an amount from the monthly payroll, even if there has been a clerical error. The first thing is that the Director of HR should be informed of such errors, as such deductions can lead to lower morale for the concerned employee and should, therefore, be avoided. Collecting such a meagre amount may be penny-wise and pound-foolish. It is not the money that is important for the company, but the morale. The past should be forgotten, and we should learn not to repeat mistakes in the future. A mistake is a mistake, and not all mistakes can be rectified.
If, however, the deduction cannot be avoided, you must inform the employee in writing about the same and obtain authorization from them. They may not be able to afford to pay back during this month and may want it to be postponed.
Thank you.
From India, Panipat
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3There are many things to be taken into consideration while deducting an amount from the monthly payroll, even if there has been a clerical error. The first thing is that the Director of HR should be informed of such errors, as such deductions can lead to lower morale for the concerned employee and should, therefore, be avoided. Collecting such a meagre amount may be penny-wise and pound-foolish. It is not the money that is important for the company, but the morale. The past should be forgotten, and we should learn not to repeat mistakes in the future. A mistake is a mistake, and not all mistakes can be rectified.
If, however, the deduction cannot be avoided, you must inform the employee in writing about the same and obtain authorization from them. They may not be able to afford to pay back during this month and may want it to be postponed.
Thank you.
From India, Panipat
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Dear Aby Thanks for your point of view. I appreciate that you brought it my notice. Maybe other members will have something more to say on your thoughts based on their experience. Cheers, Nitin
From India, Mormugao
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From India, Mormugao
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Hi,
Calculate the actual salary for 29 days. You have paid for 30 days. The difference you can recover under the head of advance salary in the subsequent month after calculating his actual salary for the incremental month. Importantly, you need to communicate to the concerned employee that this was an error and take him into confidence.
Regards,
Jitendra
From United States, Boston
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Calculate the actual salary for 29 days. You have paid for 30 days. The difference you can recover under the head of advance salary in the subsequent month after calculating his actual salary for the incremental month. Importantly, you need to communicate to the concerned employee that this was an error and take him into confidence.
Regards,
Jitendra
From United States, Boston
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Hi,
Pay salary for 30 days for the month in which there is a salary revision. Calculate one day's pay and deduct it from his salary under a specific heading, such as Salary Advance or Other Deductions. Try to complete both actions in the same month without delay. If the recovery amount exceeds his affordability, provide the option of spreading it over two or three installments.
Please ensure that the affected employee is informed, and be meticulous in future calculations. If you pay less, the employee may approach you, but if you overpay, no one will likely report the error. Keep your immediate boss updated as he may assist in handling any issues that arise.
Mangai
From India, Chennai
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Pay salary for 30 days for the month in which there is a salary revision. Calculate one day's pay and deduct it from his salary under a specific heading, such as Salary Advance or Other Deductions. Try to complete both actions in the same month without delay. If the recovery amount exceeds his affordability, provide the option of spreading it over two or three installments.
Please ensure that the affected employee is informed, and be meticulous in future calculations. If you pay less, the employee may approach you, but if you overpay, no one will likely report the error. Keep your immediate boss updated as he may assist in handling any issues that arise.
Mangai
From India, Chennai
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I had been paid excess salary by my employer for the past six years. Now, they are trying to recover the overpayment. How can I fight this with my employer? They gave me a promotion on 16.02.2003. Please guide me on how to proceed with fighting my employer. Is there any court judgment available to prevent them from taking action against me?
From India, Vadodara
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From India, Vadodara
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I would like to ask if the employer is entitled to retrieve excess incentive from employees if it is a mistake of their HR Compensation and Benefits division. The company is threatening to put dishonesty on their 201 file wherein it is not their fault that such a mistake happened. The employees are willing to give back the money, given that the company would agree to a salary deduction. Is it really possible to indicate it as dishonesty when, in reality, it is not the employees' fault?
From Philippines
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From Philippines
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Employee cannot escape recovery of excess payment SC 01.11.2013.pdf
Salary & Compensation Guidelines.zip