Arrears
Arrears, or arrearages is a legal term for the
type of debt accrued after missing an expected
payment. Arrears accrue from the date upon the
first missed payment. The term is often used
to describe being late with rent, royalties
(or other contractual payments), child support,
or other legal financial obligation. The word
is also used to describe entitlements earned,
as in a job wage or salary.
For example:
"As an employee of __________ (Company
Name), you are paid one month in arrears."
When you start work on September 5th, after
one month you would have accumulated a certain
amount of worked hours upto October 4th. However,
your salary for the worked hours during the
payroll period September 5th to October 4th
will not be paid to you until the start of the
next payroll period i.e. October 5th to November
4th.
Therefore, your salary for:
Sep 5th - Oct 4th will be paid at the beginning
of November 5th.
Oct 5th - Nov 4th will be paid at the beginning
of December 5th.
Nov 5th - Dec 4th will be paid at the beginning
of January 5th."
Usually Payroll will have a "cut-off"
date at which your salary will be paid for the
previous month's work. This is usually at the
end of the month or the beginning of the next.
