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This question is about salaries.
What is retroactive pay?
Retroactive pay or retro pay is the payment that is added to an employee's paycheck to make up for insufficient compensation in the previous pay cycle.
Essentially, retroactive pay is when a company aims to rectify an employee's compensation because they were underpaid during a given pay period. This is different from back pay, in which an employee is paid for work or services previously performed that they were not at all compensated for.
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