In simple terms, Salary Arrear is the difference between current and incremental salary. Later on, the company decides to pay him the difference in salary for that delayed period. It is an example of natural causes.Īn employee is due for promotion and not promoted for any company reason.
Thus, he/she receives 2 month’s salary in arrears. Whereas artificial causes include, lawsuits, delayed promotions, etc.Īn employee’s bank account process took 2 months to open. Natural causes include delay in opening a bank account, payment system failures, etc. Usually, these delays can be either natural or artificial. In simple terms, salary arrears are the delayed either the differential payment of incremental salary or full payment normal salary after the due date. The word “Arrears” means previous partial or full overdue of any payments. Salary Arrears means the previous salary dues that an employer pays during the current month or year.
