Glossary
Partial Payments
Meaning & Definition
Partial Payments are those payments made by the employer to employees in respect of only a part of their salary/wages instead of paying the total salary/ wage bill for a particular payroll period. This may be because of several reasons, such as joining in the middle of the month, leaving, non-payment period, salary advance, etc.
Important Features of Partial Payments
- Ensures employees receive payment for the period they have worked.
- Supports accurate payroll processing during employee lifecycle events.
- Helps manage salary adjustments, recoveries, and payroll corrections.
- Reduces payroll disputes through transparent salary calculations.
- Improves payroll accuracy and financial recordkeeping.
Legal Considerations
There is no direct statutory compliance in respect of Partial Payments. However, salary payments shall adhere to the provisions of the Code on Wages, 2019.
