The process for arrear calculation in Emportant HRMS. Arrears typically arise when an employee's salary is revised retrospectively, resulting in a difference in the amount owed to the employee for past periods.
Below are the steps involved in the arrear calculation process:
Step 1: Update Increment Date from data upload or pay structure from add/edit employee details. This date represents the start of the period for which the revised salary will be applicable.
Step 2: Update the revised salary master with the new salary details, including changes in basic pay, allowances, deductions, and any other components of the total CTC (Cost to Company).
Step 3: Generate the Payroll: Once the increment date and revised salary master are updated, proceed to generate the payroll for the relevant period.
The payroll generation process will automatically calculate arrears for the affected employees based on the difference between the old and new salary structures for the retroactive period.
Ensure that the arrears calculation is accurate and reflects the correct amount owed to each employee.