What is Salary arrears?
Short answer
Arrears are pay owed for earlier months, usually because a raise is approved with an earlier effective date. They are paid with a later payroll run.
How they arise
- A salary revision is approved after payroll has already run at the old rate for some months.
- The difference for each of those months is the arrears.
- Arrears are taxed and counted in the run that pays them.
In AdviHR
AdviHR computes arrears when a revision with an earlier effective date is approved, and adds them to the next payroll run as a separate line on the payslip.
Frequently asked questions
When are arrears paid?
With the next payroll run after they are approved.
Related terms
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser.