How are arrears calculated?

What Are Arrears?

Arrears refer to salary payments that were due in a previous period but are paid later. For example, if an employee receives a salary hike, but the revised salary is paid in a later month, the difference paid is called arrears. Essentially, arrears compensate for the work done in a past pay period.

How to Calculate Arrears Using Keka

To calculate arrears in Keka:

1. Navigate to: Payroll → Run Payroll → Salary on Hold & Arrears

2. On the Salaries on Hold & Arrears page, click Save and Continue until you reach the Arrears tab.

   

3. In the Arrears tab, you will see the employee arrear details. Click the amount under the Total Arrear Amount column.

4. The Arrear Breakup will be displayed.

   

If any salary components are missing from the breakup, follow these steps to include them:

1. Go to: Payroll → Settings

2. Select the pay group you want to configure.

3. Click the Configure Icon under the Pay Groups tab.

   

4. In the Salary Components tab, choose the component to include and click the Edit Icon.

5. Check the box to Include this component in arrears calculation, then click Update.