Back pay refers to the compensation or wages that an employee is owed for work they have already performed but were not paid for or were underpaid due to an error, delay, or violation of employment laws or agreements. It is the payment made to rectify the past wages owed to the employee.

Example:

If an employee's salary increase was supposed to be implemented starting from January 1st, but the employer mistakenly failed to apply the increase until June 1st, the employee would be entitled to back pay for the months of January to May to make up for the missed or underpaid wages during that period. Back pay can also be awarded in cases where an employee successfully files a complaint or lawsuit for unpaid wages or wage violations. In such cases, the employer may be required to pay the employee not only unpaid wages but also additional compensation in the form of back pay. Back pay is an important legal concept that ensures employees receive the wages they are entitled to and serves as a mechanism for addressing wage-related grievances.