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I want to change the basic salary for an employee from 3 months ago what can i do ?

Former Member
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I want to change the basic salary for an employee from 3 months ago what can i do ?

former_member219272
Active Contributor
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is it a promotion ?

have you hired him with incorrect salary?

is the salary increased or decreased ?

what there any master data which has caused the issue?

since it is a back dated changed you have to be very careful before making any changes

former_member193210
Active Contributor

Contrary to what Km Benjamin mentioned, there are many reasons why a Retroactive Salary Change would be required, and here are a few scenarios:

- the employee was hired at the minimum rate but told that once proof of qualifications were submitted, the salary would be adjusted retroactively;

- the Collective Agreement (or Work Contract) includes a retroactive Salary Grid Increase;

- a mistake was made during the last Salary Change for an employee, and it took time to get feedback from the employee and process it;

- it took time for the Head Office to process a reassignment/promotion/demotion.

After the retroactive change is made, it is preferable to do a Payroll Simulation to confirm the impact of the change (whether positive or negative), but there should be no need to consult an accountant.

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Answers (4)

Answers (4)

gbergheim
Explorer

Change the salary details. Run a payroll simulation and review the payroll results with the employee so that all impacts are understood. Payroll will retro and adjust the results automatically. If there are any errors review the errors and resolve.

former_member219272
Active Contributor
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is it a promotion ?

have you hired him with incorrect salary?

is the salary increased or decreased ?

what there any master data which has caused the issue?

since it is a back dated changed you have to be very careful before making any changes

regards

vijay

BalaAP
Active Contributor
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Hi,

It is very usual to do back-dated changes in salary (e-g, in indian public sector, Dearness Allowance is part of Basic pay, which usually will be announced later (every three months), so we need to change for all the employees who are applicable for this allowance after a month but back-dated).

Retro active accounting will take care of this.

regards,

Bala

former_member193210
Active Contributor

Hello Bala,

It could be "very unusual" to do back-dated salary changes in some Countries, but not in other ones,

and that is one important detail that Youstina Victor did not mention.

BalaAP
Active Contributor
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You are right Remi. (Country is very important in payroll).

former_member193210
Active Contributor
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Create a retroactive "Salary Change" Action.

You may also want to do a Payroll Simulation to see the impact it will have on the current pay.