Arrears in salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2015 Dear expert
plz give me example of arrears of salary to understand it batter if possible....

plz reply soonest

Ishan Shah

Ishan Shah (Expert)
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22 August 2015 Dear Anonymous,

Good Day...!

Simple example which I am giving to all my students..!

Assume, Company Ola Ltd. following financial year as closer of books and financial year also used as bonus purpose and increment letter for the new financial year.

Year ended on 31.03.2015, however due to audit process and other legal formality, company is not able to declared increment letter to its employees. On account of which no issue of increment, employees receiving salary same as per last increment letter, even though their incremnets are due for the new financial year.

After first quarter of 2015-16, on July, company has issued increment letter to all their employees based on performance. Since, increment issued after 3 months but increments effected from 1 April 2015, on account of which employees of the company receiving salary of July with new increment which is being effected from July as well as also past three month salary in arrears (Diff between Old Salary - July Salary with Increment) i.e. Increment effected will be receivable from April to June, which is in arrears.

July salary will be :

July Salary (With increment)+ Arrears in Salary (Increment amount * 3 months April, May and June).

Hope this is clear.

Thanks.
Regards,
Ishan.