Define: Back Pay

UK Accounting Glossary

Definition: Back Pay



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Full Definition of Back Pay


Back pay is a payment due for work done prior to the current pay period. Back pay may be the result of a missed payment or a payment that was intentionally not made, or back pay may be owed due to a backdated pay increase. Back pay applies to both hourly as well as salaried employees, and back pay may also be applied to over-due payments owed to freelance workers, part-time employees, as well as consultants. If a company is chronically late in the payment of wages and salaries and owes considerable back pay to its employees, that is often a sign that a company is in financial trouble. Back pay may also be referred to as back salary or back wages.


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Back Pay. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 24, 2020 https://payrollheaven.com/define/back-pay/.
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Back Pay. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/back-pay/ (accessed: February 24, 2020).
American Psychological Association (APA):
Back Pay. PayrollHeaven.com. Retrieved February 24, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/back-pay/

Definition Sources


Definitions for Back Pay are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.