The phrase “arrear” refers to the sum of money that is owed and must be paid. Payments that are past due owing to past-due revisions or employee salaries that are on hold are referred to as arrears in Indian payroll. When the previous week’s payroll is processed this week or there is a delay in the payroll schedule, it is considered that there is an employee arrear. Since attendance from the previous month is taken into account for determining pay, payroll is typically behind schedule. Payroll errors can occasionally result in arrears as well.
