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Free template template · Word

Salary Arrears Statement

A salary arrears statement is a month-wise working sheet comparing salary due under the revised rate with salary actually drawn, component by component, to arrive at gross and net arrears. Payroll prepares it as backup for the arrears letter and for audit.

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Preview of the template

[Highlighted] = fill in
[Company Logo][Company Name]

SALARY ARREARS STATEMENT

Employee Name:
[Employee Name]
Employee ID:
[Employee ID]
Designation:
[Designation]
Revision Reference:
[Reference Number] dated [DD/MM/YYYY]
Effective Date:
[Effective Date]
Arrears Paid With:
[Month YYYY] Payroll

A. Month-wise Due versus Drawn (₹)

MonthPaid DaysBasic DueBasic DrawnHRA DueHRA DrawnOther DueOther DrawnGross Difference
[Month YYYY][Number][Amount][Amount][Amount][Amount][Amount][Amount][Amount]
[Month YYYY][Number][Amount][Amount][Amount][Amount][Amount][Amount][Amount]
[Month YYYY][Number][Amount][Amount][Amount][Amount][Amount][Amount][Amount]
[Month YYYY][Number][Amount][Amount][Amount][Amount][Amount][Amount][Amount]
Total[Amount][Amount][Amount][Amount][Amount][Amount][Amount]

B. Statutory Impact and Net Arrears (₹)

ItemAmount
Total Gross Arrears[Amount]
Employee PF on Basic Arrears (12%)[Amount]
Employee ESI on Arrears (0.75%, if covered)[Amount]
Professional Tax Adjustment[Amount]
TDS on Arrears[Amount]
Net Arrears Payable[Amount]
Employer PF on Arrears (for deposit)[Amount]
Employer ESI on Arrears (for deposit)[Amount]

Remarks: [e.g. LOP of 2 days in Month YYYY adjusted; HRA arrears computed at revised rate for metro location].

Prepared by
[Payroll Executive]
Date: [Date]
Checked by
[Payroll Manager]
Date: [Date]
Approved by
[Authorised Signatory]
Date: [Date]

What this template includes

  • Employee header with revision reference
  • Due versus drawn columns for each month
  • Paid days per month to handle LOP
  • PF and ESI impact on arrears
  • Totals row and net arrears
  • Prepared, checked and approved signatures

When to use it

  • Calculating arrears for a backdated increment or promotion
  • Computing DA or minimum-wage arrears after a notification
  • Audit support for a lump-sum arrears payment
  • Answering an employee's query on how arrears were calculated

How to customise this template

  1. 1Add one row per month in the arrears period
  2. 2Use earned (paid-day adjusted) amounts, not full rates
  3. 3Add extra columns for DA or other revised components
  4. 4Mark ESI as not applicable if revised gross crosses the ESI limit

HR tips

  • Use a maker-checker process before payment
  • Reconcile total arrears with the payroll register
  • Keep the statement with the revision letter for auditors
  • Watch for employees who exited during the arrears period

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Frequently asked questions

What is a due and drawn statement?+

It is a table that compares what was due under the revised pay with what was actually drawn, month by month. The difference is the arrears.

How are arrears calculated for LOP months?+

The revised rate is pro-rated for paid days in that month, in the same way as the original salary, before taking the difference.

Is ESI applicable on arrears?+

ESI contribution is generally payable on wages paid, including arrears, for employees covered during the relevant contribution period. Check with your payroll adviser for edge cases.