How to revise the salary of an employee? What is its impact on the calculation of arrears?

Salary revision refers to a change in the employee’s salary structure that impacts core components like Basic Pay, PF, and Gratuity. It may also include allowances such as HRA, Special Allowance, Medical, or Travel Allowance.

For example, a 10% salary revision means a 10% increase across all applicable components. Salary revisions help organizations improve employee satisfaction and retention.

How to Revise the Salary of an Individual Employee

1. Use the Search Bar to find the employee.

   

2. Open the employee’s profile and go to Finance → Pay → Salary → Revise Salary.

   

3. In the Revise Salary window:

   • Enter the New Salary.

   • Set the Effective From Date.

   • Optionally, add any Bonus if applicable.

4. Click Revise to apply the changes.

   

How to Revise Salaries in Bulk

1. Navigate to Payroll → Payroll Admin → Operations.

   

2. Under Payroll Imports, click Import Salaries with Effective Date.

   

3. In the Import Salaries with Effective Date window:

   • Select the Pay Group (if multiple exist).

   • Click Download the Excel Template.

     

4. Open the downloaded Excel file, update salary details, and save it.

   • Note: Fields with red headers are mandatory.

     

5. Go back to the portal and click Upload Excel File.

   

6. Match columns with system fields and click Continue.

7. Review the data preview and click Continue again to upload.

Important: The effective date for the revised salary must be different from the previous salary’s effective date, or an error will occur.

Impact of Salary Revision on Arrears

If a salary revision is backdated, arrears will automatically be calculated and paid in the next payroll.

Example:

• Old Salary: ₹30,000/month

• Revised Salary: ₹35,000 (Effective from April 1)

• Salary Released in April: ₹30,000

• Salary Released in May: ₹35,000 (Revised salary) + ₹5,000 (April arrears) = ₹40,000