Retro

In HR, “Retro” often refers to retroactive pay or payments. Retroactive pay is compensation that is owed to an employee for work performed in the past, typically as a result of adjustments to pay rates, salary increases, changes in employment status, or recovery of wages due to errors in payroll processing. This adjustment may occur due to a variety of reasons such as a new contract, increased minimum wage laws, or corrections of miscalculations in previously issued paychecks. When an organization processes retro pay, it ensures that the employee receives the correct compensation for the time worked that may have been inaccurately compensated in earlier payroll periods. Retroactive payments can help maintain employee satisfaction and trust in payroll accuracy, as well as comply with labor laws and contractual obligations.