Currently, there is no direct option to select specific months for processing backdated salary revision arrears. However, you can process the arrears month-wise by using salary revisions with different effective dates.
For example, if the revised CTC needs to be processed in August without arrears, followed by July arrears in September and June arrears in November, follow the steps below.
Step 1: Process the revised salary in August without arrears
- Perform a salary revision with the revised CTC effective from 1 August 2026.
- Process the August payroll.
- Since the revision is effective from the current payroll month, no backdated arrears will be calculated.
- Before locking the payroll, ensure that Include this component in arrears calculation is enabled for all applicable salary components.
You can verify this setting from:
Payroll → Settings → Pay Group → Salary Components → Select Component → Edit → Enable Include this component in arrears calculation
Step 2: Process July arrears in September
After locking the August payroll:
- Perform another salary revision with the same revised CTC.
- Keep the CTC change at 0%.
- Set the effective date as 1 July 2026.
- Process the September payroll.
The system will calculate the salary difference from July onwards. Since the revised salary was already processed for August, there will be no arrear difference for August.
Therefore, only the July 2026 arrears will be processed, along with the applicable PF and ESIC arrears.
Step 3: Process June arrears in November
After processing and locking the September and October payrolls:
- Perform another salary revision with the same revised CTC.
- Keep the CTC change at 0%.
- Set the effective date as 1 June 2026.
- Process the November payroll.
The system will check the salary difference from June onwards. Since August's revised salary and July's arrears have already been processed, only the pending June 2026 arrears will be calculated, along with the applicable PF and ESIC arrears.
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