Retro Pay Meaning | How to Calculate Retro Pay?
“Retro pay,” short for “retroactive pay,” refers to a payment made to employees for work they’ve already done but weren’t paid for at the time of the work. This could happen when the employee was not paid because of an administrative error, a salary increase that was not applied in time, or a delayed pay raise. It is the distinction between what an employee receives and what they should have paid. Once the difference is discovered, it usually comes in a lump sum.