How to withhold the salary processing/payout of an employee

Employers are not legally allowed to withhold salary due to poor performance if the employee has worked. However, salary can be held if:

• The employee gives written consent.

• The employee fails to serve notice period as per contract.

• Background verification of a new employee is pending.

To hold salary in Keka:

1. Go to Payroll → Run Payroll.

2. Select the appropriate Pay Group (if multiple exist).

3. Choose the relevant Payroll Month.

4. Click Salaries on Hold & Arrears.

   

This opens two options:

Salary Processing On Hold: Holds net pay and statutory deductions.

1. Click + Add Employee.

2. In the Pay Action column, select Hold salary processing this month.

3. Click Save & Continue.

   

Salary Payout On Hold: Holds only the net pay (statutory contributions still go through).

1. Click + Add Employee.

2. In the Pay Action column, select Hold salary payout this month.

3. Click Save & Continue.

   

4. For bulk actions, use Import Processing/Payouts on Hold to upload data via Excel.