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  • FIRST POST
    • MissMarble
    • By MissMarble 13th Jun 19, 4:59 PM
    • 69Posts
    • 55Thanks
    MissMarble
    Payable monthly in arrears?
    • #1
    • 13th Jun 19, 4:59 PM
    Payable monthly in arrears? 13th Jun 19 at 4:59 PM
    Hi,

    I have been offered a new job within the private sector, but the contract states 'payable monthly in arrears'. What does this actually mean?

    I currently get paid on the penultimate working day of the month, but I am a bit confused about how it could be paid in arrears.

    Please can someone advise?
    Thank you.
Page 1
    • custardy
    • By custardy 13th Jun 19, 5:03 PM
    • 34,833 Posts
    • 29,534 Thanks
    custardy
    • #2
    • 13th Jun 19, 5:03 PM
    • #2
    • 13th Jun 19, 5:03 PM
    Hi,

    I have been offered a new job within the private sector, but the contract states 'payable monthly in arrears'. What does this actually mean?

    I currently get paid on the penultimate working day of the month, but I am a bit confused about how it could be paid in arrears.

    Please can someone advise?
    Thank you.
    Originally posted by MissMarble
    You work a month,then get paid for that month.
    • phill99
    • By phill99 13th Jun 19, 5:52 PM
    • 8,618 Posts
    • 7,807 Thanks
    phill99
    • #3
    • 13th Jun 19, 5:52 PM
    • #3
    • 13th Jun 19, 5:52 PM
    As above. You work in June and get paid at the end of June.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • getmore4less
    • By getmore4less 13th Jun 19, 6:03 PM
    • 37,390 Posts
    • 23,071 Thanks
    getmore4less
    • #4
    • 13th Jun 19, 6:03 PM
    • #4
    • 13th Jun 19, 6:03 PM
    There is often confusion.

    What you need to know(ask them) are

    Pay period.
    Pay day for pay period.

    Typical arrears is the pay day is close to the end of the pay period.

    Also get the timing deadlines for expenses, overtime and any other payments.
    • custardy
    • By custardy 13th Jun 19, 6:26 PM
    • 34,833 Posts
    • 29,534 Thanks
    custardy
    • #5
    • 13th Jun 19, 6:26 PM
    • #5
    • 13th Jun 19, 6:26 PM
    Also keep in mind if you miss the pay cut off you could be doing over a month before being paid.
    • YBR
    • By YBR 13th Jun 19, 6:31 PM
    • 92 Posts
    • 82 Thanks
    YBR
    • #6
    • 13th Jun 19, 6:31 PM
    • #6
    • 13th Jun 19, 6:31 PM
    As above is the typical way wages work, i.e. Work June and get paid for that month's work at the end of June.
    Occasionally companies have other policies - at the moment I'm paid on 15th for the whole month i.e. part advance, part arrears.
    • chrisbur
    • By chrisbur 13th Jun 19, 7:02 PM
    • 3,263 Posts
    • 1,776 Thanks
    chrisbur
    • #7
    • 13th Jun 19, 7:02 PM
    • #7
    • 13th Jun 19, 7:02 PM
    There have been occasional posts on here from people paid for each month at the end of the following month and this was described as "monthly in arrears" Not a common practise but it does happen so definitely best to check.
    • LeeUK
    • By LeeUK 15th Jun 19, 12:27 PM
    • 6,446 Posts
    • 2,974 Thanks
    LeeUK
    • #8
    • 15th Jun 19, 12:27 PM
    • #8
    • 15th Jun 19, 12:27 PM
    In my current job I get paid on a Thursday for the work I did the previous Monday to Friday. (Starting to love weekly pay!)

    I had a job once where I was paid monthly on the last working day but if you had done any overtime or were off sick in the last week of the month, then those adjustments wouldn't happen until the following month pay. It was all very complicated.
    • MarkN88
    • By MarkN88 15th Jun 19, 3:07 PM
    • 1,052 Posts
    • 627 Thanks
    MarkN88
    • #9
    • 15th Jun 19, 3:07 PM
    • #9
    • 15th Jun 19, 3:07 PM
    I started a job once where we were paid for the months work st the end of the following month.

    Best to check and get clarification before you start to ensure you can budget accordingly.
    • getmore4less
    • By getmore4less 15th Jun 19, 5:59 PM
    • 37,390 Posts
    • 23,071 Thanks
    getmore4less
    I started a job once where we were paid for the months work st the end of the following month.

    Best to check and get clarification before you start to ensure you can budget accordingly.
    Originally posted by MarkN88
    That is normally known as a month in hand.
    • MarkN88
    • By MarkN88 15th Jun 19, 8:21 PM
    • 1,052 Posts
    • 627 Thanks
    MarkN88
    In hand? Isn’t it arrears?

    So for example, I worked all of June but didn’t get paid until the end of July.
    • comeandgo
    • By comeandgo 15th Jun 19, 9:05 PM
    • 2,723 Posts
    • 3,736 Thanks
    comeandgo
    In hand? Isnít it arrears?

    So for example, I worked all of June but didnít get paid until the end of July.
    Originally posted by MarkN88
    Yup, that's a month in hand. I've worked in companies who used a week in hand or two weeks in hand but never a month. At least when you finish with this company you will still have a decent pay to leave with.
    • Savvy_Sue
    • By Savvy_Sue 16th Jun 19, 12:22 AM
    • 40,089 Posts
    • 37,453 Thanks
    Savvy_Sue
    I had a job once where I was paid monthly on the last working day but if you had done any overtime or were off sick in the last week of the month, then those adjustments wouldn't happen until the following month pay. It was all very complicated.
    Originally posted by LeeUK
    Possibly for you, but if payroll have an agreed system it's the only sane way to deal with occasional adjustments. You have a cut off point: anything you know about BEFORE that date is dealt with that month, anything which happens or may happen AFTER that date has to wait.

    Mind you, I prefer our system. Some of our staff are 'on call' and get a payment for that. A few others do paid overtime. Since I can never know for sure until the end of the month who has actually done what, it makes perfect sense to make those payments at the end of the month AFTER the one in which the work was done. And I sort it all out in the following month, rather than having to track what adjustments were dealt with in-month.
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    • LeeUK
    • By LeeUK 16th Jun 19, 12:39 AM
    • 6,446 Posts
    • 2,974 Thanks
    LeeUK
    Possibly for you, but if payroll have an agreed system it's the only sane way to deal with occasional adjustments. You have a cut off point: anything you know about BEFORE that date is dealt with that month, anything which happens or may happen AFTER that date has to wait.
    Originally posted by Savvy_Sue
    Hence why having a week lying on system is better. Like my previous job was paid 4-weekly with a week lying on so all adjustments were correct at time of pay.

    The employer that paid me last working day of month with messy adjustment system is now bust. Maybe it was because of their payroll, who knows.
    • getmore4less
    • By getmore4less 16th Jun 19, 2:06 AM
    • 37,390 Posts
    • 23,071 Thanks
    getmore4less
    In hand? Isnít it arrears?

    So for example, I worked all of June but didnít get paid until the end of July.
    Originally posted by MarkN88
    Arrears is used to describe getting paid after you have worked it typically for monthly this is around the end of the month(so a bit may be in advance of working) or a bit after.

    Once the gap between the end of the work period and the pay day become a full period it becomes "in hand"

    Used to be a lot more common on weekly where you work a week but get paid the end of the following week
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