Retro Earnings Definition

Earnings paid to an employee “after the fact” for wages that should have been paid in a prior paycheck.

Retro Earnings Extended Definition
Essentially, retro earnings are funds paid to employees after they’ve completed work or another compensation agreement has been made, dating back to a specific time. Retro earnings are most common with salary or hourly wage raises that take place retroactively or when union deals are made to retroactively provide bonuses, payment adjustments, etc.

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Last Updated By

Jenna Hutkowski | Apr 28, 2023