Glossary

What is Retroactive pay?

Pay owed for an earlier period that was underpaid or not yet paid, usually after a salary increase or a correction.

Payroll computes the difference between what was paid and what should have been paid for each affected period, and adds it to a later pay run as a separately labelled line. Contributions and tax on the back pay follow the period in which it is paid.

Related terms

  • Regular holiday: A holiday on which employees are paid 100% of the daily wage even if they do not work, and 200% if they do.
  • Rest day: The weekly day off an employee is entitled to after six consecutive days of work. Work on a rest day is paid at a premium of at least 30% of the regular rate.
  • Separation pay: A payment made to an employee whose employment ends for certain reasons, such as redundancy, retrenchment, closure or a disease that makes continued work harmful.
  • Service incentive leave (SIL): Five days of paid leave a year for covered employees who have worked at least one year, convertible to cash if unused at year-end.

Compute it in OneHRIS

OneHRIS applies Philippine pay and compliance rules in every payroll run. See the Help Center for step-by-step guides, try the free calculators, or see pricing.

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