Why are previous-month salary arrears not generated for a new joiner?

This scenario can occur when an employee joins after the previous month's payroll has already been locked or when payroll was disabled for the employee during the joining month.

For example, if an employee joins on 27th July 2026 and is added to the system after the July 2026 payroll has been locked, or if payroll was disabled for the employee in July, no payroll record will be created for the employee for July.

Since there is no payroll record for the employee in July, the system does not have a previous payroll record from which the arrears can be generated. To process the July salary as arrears in the subsequent month, a July payroll record must first be created and the salary should be placed on Salary Processing on Hold.

Resolution

To create the required payroll record for the new joiner, you need to partially roll back the previous month's payroll. It is recommended to select an employee who does not have any tax liability or salary changes for the rollback.

Step 1: Partially Roll Back the Previous Month's Payroll

Navigation: 

Payroll → Run Payroll → Select Pay Group → Select July 2026 → Three Dots (⋮) → Rollback Payroll

1. Go to Payroll → Run Payroll. 
2. Select the relevant Pay Group. 
3. Select the July 2026 payroll month. 
4. In the Run Payroll section, click the Three Dots (⋮) menu. 
5. Select Rollback Payroll. 
6. Choose Only selected employees in this month. 
7. Click Confirm. 
8. In the Rollback Payroll window, click Click Here to search and select the required employee. 
9. Select the employee and click Rollback. 

Step 2: Put the New Joiner's Salary on Hold

After the payroll has been partially rolled back:

1. Go to New Joinees & Exits. 
2. Navigate to the New Joinees tab. 
3. The new joiner should now be available for processing. 
4. Select Hold Salary Processing This Month for the new joiner. 
5. Process the July payroll. 

This will create the required July payroll record for the new joiner while keeping the salary on hold for processing in the subsequent month.

Step 3: Verify and Lock the July Payroll

After processing the July payroll:

1. Check the Pay Register and verify the payroll record. 
2. Verify that the Net Pay for the employee whose payroll was rolled back remains unchanged. 
3. Reconcile the payroll values with your existing payroll records. 
4. Once the values are verified, lock the July payroll. 

Step 4: Release the Salary as Arrears in the Subsequent Month

For example, in August 2026:

Navigation:  
Payroll → Run Payroll → Salary on Hold & Arrears → Salary Processing on Hold

1. Go to Salary Processing on Hold. 
2. Locate the new joiner. 
3. Release the salary from hold. 
4. Select Process as Arrears as required. 
5. Process the August payroll. 

Once processed, the July salary will be reflected as arrears in the August payroll for the employee.