Payroll and HR terms, in plain English.
A short definition you can quote, then a fuller explanation. 20 terms.
A
Allowance
A regular payment added to basic salary for a stated purpose, such as housing, transport or medical costs.
Arrears
Pay that was owed for an earlier period and is paid later, usually because a raise or an input was missed.
N
Net pay
What the employee actually receives after tax, contributions, instalments and recoveries are deducted from gross pay.
Notice pay
Pay in place of a notice period: owed to an employee who is let go without working it, or by one who leaves without serving it.
P
Payroll lock
The step that freezes a payroll period so its figures can no longer be edited, only corrected by a separate run.
Payroll register
The summary of a payroll run for every employee, from gross pay to net pay, reviewed and signed before payment.
Payslip
The statement given to an employee for each pay period, showing what they earned, what was deducted and what they received.
Pro-rata (proration)
Paying only for the part of a period that applies, such as a joiner’s first month or a leaver’s last, in proportion to the days covered.
Provident fund
A savings fund built from regular contributions by an employee and usually their employer, paid out when the employee leaves.
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