An Ad Hoc Payment is a payment outside of the normal invoicing and checks request process. These include one-off or occasional pay. Ad Hoc Payments are done for various reasons, including payroll needs such as late or adjusted timesheets, missed payments, tax payments, extra costs, incentives paid to employees, and other special requests.
Ad Hoc payments in Indian payroll which are supposed to be paid to employees are as mentioned below:
Over time, Nightshift, Incentive, Petrol Allowance, Diwali Bonus, Service charge, Gift Voucher, other expenses, etc. Companies further offer salary/wage-advance on a per request basis, which is also considered ad-hoc pay.