Introduction to Partial Salary Hold Feature

In many organizations, during an employee’s notice period, their salary is often withheld as part of the Full and Final (F&F) settlement. Traditionally, this withhold is done for the entire month, which can place a significant financial burden on employees.

To alleviate this burden, Keka introduces the Partial Salary Hold feature. This feature allows finance admins to hold salary for a specific percentage or for a certain number of days within a month, providing more flexibility to employees while managing their salary during the notice period.

The Partial Salary Hold approach ensures that employees still receive part of their salary each month, reducing the impact of withholding an entire month's salary.

Example Scenario-

Let’s take an example to demonstrate how partial salary hold works:

• Employee Details:

  • Net Salary: INR 30,000

  • Payable Days in April: 28 (excluding 2 LOP)

  • Days of Salary to be Held: 15 days

• Partial Salary Hold Applied:

  • The system will process salary for 13 days (28 days - 15 days) in April.

  • The remaining 15 days will be withheld and can be paid later in arrears.

In May, when processing salary, the admin can either:

• Release the 15-day salary as arrears, or

• Void the on-hold salary with no impact on future payroll calculations.

Admins can now choose to withhold a specific percentage of the salary or withhold salary for a certain number of days during the employee’s notice period. This gives users more control over how much salary is held back. They can also withhold a percentage of the net pay, while processing the rest of the salary as usual.

The Partial Salary Hold feature offers a flexible and efficient way for admins to manage salary withholdings during the notice period. By withholding either a percentage of the salary or a specific number of days, this feature helps reduce the financial strain on employees while maintaining smooth payroll processing.

To learn how to hold partial salary, follow the detailed steps in this guide - Navigating the Partial Salary Hold Feature