Calculate and process employee's arrears

Updated in February - 2026 | Subscribe to watch greytHR how-to video

Sometimes an employer may revise an employee's salary from retrospective effect, or a salary revision may happen, but the increments are paid out at a later date. In both cases, since the salary for previous periods is already disbursed, the differential amount known as arrears is paid out in a subsequent period. In such a situation, to avoid confusion, the arrears amount is computed and mentioned separately in the payslips.

The Arrears page in the greytHR Admin portal allows you to determine the difference between the revised salary and the actual salary of the employees for the specific months. The page displays the list of batches which expands and displays the employees' list.

To view the Arrears page, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

You can perform the following actions on the Arrears page:

1. Calculate arrears for the employees.

2. Process the arrears in batches for multiple employees.

3. Download the arrears details of an employee.

Calculate arrears for the employees

To calculate the arrears for the employees, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

1. On the Arrears page, click + Pay Arrears. The Step 1: Arrear Effective From section appears.

2. From the Arrear Effective From dropdown calendar, select the required date.

3. In the Remarks textbox, enter the remarks if required.

4. Click Next. Step 2: Employees section appears.

5. Under Step 2: Employees section, using the Employee Filter, Category, and Employee filters, customize the list of employees as per your requirements.

6. Using the checkboxes available next to Employee No, select the employees. 

7. Click > to drop the employees from the left to right column. 

8. Click Next. The Step 3: Process and View section appears.

9. Select the employees from the list and click View Statement to download the arrear statement. 

10. Click Finish to calculate the arrears. A success message appears. The Arrears page displays the employees for whom the arrears are calculated.

Note: You can calculate the arrears for the new employees by clicking the Process New Joinee Arrears button. To process the arrears for the new employees, the employees must be present in the current payroll month.

Process the arrears in batches for multiple employees

After completing the arrears calculation, you must process the arrears. It is a crucial step to ensure accurate payroll processing. To process the arrears in batches, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

1. On the Arrears page, a list of batches appears. Each batch contains the employees whose arrears calculations are complete.

2. From the Filter and Employee dropdown filters, select the required options to customize the list of batches.
   Note: If you select the All option in the Filter dropdown list, the Process and Process All buttons are disabled.

3. Double-click the required row. The row expands and displays the employees' list.

4. Select the employees from the list and click Process. You can select the entire batch using the check box and process the arrears.

5. Click Process All if you want to process arrears for all the batches.

Download the arrear details of an employee

To download the arrear details of an employee, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

1. On the Arrears page, a list of batches appears. Each batch contains the list of employees whose arrears calculations are complete.

2. Double-click the required row. The row expands and displays the employees' list.

3. Click the Download icon available in the Actions column to download the arrear details of an employee or a batch.

Note: You can also edit/delete an employee’s or batch details using the Edit/Delete icon in the Actions column.

Frequently Asked Questions:

What are salary arrears?

Salary arrears are the differential amounts paid to an employee when salary revisions or changes are applied retrospectively. Since salaries for previous months are already paid, the additional payable amount is calculated separately and paid in a later payroll cycle.

When should arrears be calculated?

Arrears should be calculated when:

• Salary revisions are applied with a retrospective effective date.

• Increment amounts are approved later but applicable to earlier months.

• Any correction is made to previously processed salary components.

How can I calculate employee arrears in greytHR?

To calculate the arrears for the employees, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

1. On the Arrears page, click + Pay Arrears. The Step 1: Arrear Effective From section appears.

2. From the Arrear Effective From dropdown calendar, select the required date.

3. In the Remarks textbox, enter the remarks if required.

4. Click Next. Step 2: Employees section appears.

5. Under Step 2: Employees section, using the Employee Filter, Category, and Employee filters, customize the list of employees as per your requirements.

6. Using the checkboxes available next to Employee No, select the employees. 

7. Click > to drop the employees from the left to right column. 

8. Click Next. The Step 3: Process and View section appears.

9. Select the employees from the list and click View Statement to download the arrear statement. 

10. Click Finish to calculate the arrears. A success message appears. The Arrears page displays the employees for whom the arrears are calculated.

Note: You can calculate the arrears for the new employees by clicking the Process New Joinee Arrears button. To process the arrears for the new employees, the employees must be present in the current payroll month.

Can I calculate arrears for multiple employees at once?

Yes. You can calculate arrears for multiple employees in a single batch by selecting employees using Employee Filter, Category, and Employee options during the arrears calculation process.

To process the arrears in batches, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

1. On the Arrears page, a list of batches appears. Each batch contains the employees whose arrears calculations are complete.

2. From the Filter and Employee dropdown filters, select the required options to customize the list of batches.
   Note: If you select the All option in the Filter dropdown list, the Process and Process All buttons are disabled.

3. Double-click the required row. The row expands and displays the employees' list.

4. Select the employees from the list and click Process. You can select the entire batch using the check box and process the arrears.

5. Click Process All if you want to process arrears for all the batches.

What does the “Arrear Effective From” date mean?

The Arrear Effective From date defines the month from which the revised salary or change should be applied for arrears calculation.

Can I preview arrear details before finalizing the calculation?

Yes. In Step 3: Process and View, you can select employees and click View Statement to download and review the arrear statement before clicking Finish.

7. Is it mandatory to process arrears after calculation?

Yes. Calculating arrears only computes the difference. You must process the arrears to ensure the amount is included in payroll and reflected in the employee’s payslip.

What is batch processing of arrears?

Batch processing allows you to process arrears for multiple employees together. Each batch represents a group of employees whose arrears have been calculated.

Why are the Process and Process All buttons disabled?

If you select All in the Filter dropdown on the Arrears page, the Process and Process All buttons are disabled. Select a specific filter option to enable processing.

Can I process arrears for all batches at once?

Yes. Click Process All to process arrears for all available batches in one action.

How do I calculate arrears for new joinees?

You can calculate arrears for new employees by clicking Process New Joinee Arrears.
Note: The employee must be present in the current payroll month to process arrears.

Can I download arrear details for an employee?

Yes. To download the arrear details of an employee, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Arrears.

1. On the Arrears page, a list of batches appears. Each batch contains the list of employees whose arrears calculations are complete.

2. Double-click the required row. The row expands and displays the employees' list.

3. Click the Download icon available in the Actions column to download the arrear details of an employee or a batch.

Can arrear records be edited or deleted?

Yes. You can edit or delete employee-level or batch-level arrear details using the Edit or Delete icons available in the Actions column.

How are arrears shown in the payslip?

Arrears are displayed as a separate component in the employee’s payslip to clearly distinguish them from regular monthly salary.

Will arrears affect statutory deductions?

Yes. Arrears are considered part of payroll earnings and may impact statutory deductions and taxes based on your payroll configuration.

Related articles:

• Add/Revise employee's salary

• Process employee's full and final settlement

• Process employee’s resettlement

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