Back pay

Back pay is the payment of wages or benefits that an employee should have received, but for some reason was not paid in a timely manner. Back pay is also known as «unpaid wages» or «wage recovery».

The amount of back paying is the money that an employee is owed for work he or she has done but hasn't been paid for. The law requires that employers pay their employees for all hours worked and overtime, as well as holiday pay when needed.

Back payment is the money that an employee is owed for work they performed but was not paid for. Now that you know what «back pay» means, figure out how to calculate it for your employees. 

It can be calculated by comparing an employee's salary to the minimum wage, or it can be calculated according to their hourly rate. Back pay is typically calculated based on an hourly rate instead of a monthly salary because it allows employers to understand how much each employee has earned over time. If an employee was hired at a certain rate but never actually made any money (due to being fired), then there may not be any back pay owed at all