The meaning of the term ‘arrear’ is the amount/money which is due and shall be paid. In Indian Payroll, arrear stands for payments that are overdue either because of employee salary in the hold or past dated revisions. Employee arrear is said to be there when the payroll of the past week is run in the current week or there is a delay in the payroll schedule. Mostly payroll is in arrears as the last month attendance is considered while calculating the salary. Arrears are also the result of payroll mistakes at times.

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