What is Back Pay?
‘Back Pay’ refers to the payment given to an employee which was owed by the employer but was not provided at the stipulated time.
It may not be the predetermined monetary benefit in all cases. Apart from the monetary compensation, it may also include pending wages for overtime, bonuses, commissions, etc.
A back pay might arise due to pending payment for the work that was already performed, or some work which the employee would have done, however, was denied from doing. It may even arise due to technical issues in paying on time or an error in the amount calculated at the time the payment was made.