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Retro Pay

Updated on: October 14, 2026 Sneha Gondhale 1 min read

Retro pay, or retroactive pay, is compensation owed to an employee for work they already completed but weren’t properly paid for at the time. This often comes up after a salary increase, when the adjustment needs to cover a previous pay period.

Retro pay can happen for a few reasons: contract changes, adjustments to pay scales, or simple administrative oversights.

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