Salary On Hold refers to the temporary suspension or delay of an employee’s salary payment, usually due to administrative, compliance, or performance-related reasons. Employers may place salaries on hold in cases of incomplete documentation, pending approvals, leave without authorization, resignation notice periods, or legal disputes. In some instances, companies also hold salaries when employees fail to meet compliance requirements such as KYC verification, tax declaration submissions, or contractual obligations. Unlike salary deductions, a hold does not mean forfeiture—it is a delay until the underlying issue is resolved.

Industries such as manufacturing, retail, logistics, e-commerce, and facility management services (FMS) often implement automated payroll systems to manage salary holds transparently. Employers must follow labor laws and company policies when holding salaries to avoid legal conflicts, employee dissatisfaction, and compliance violations. A well-defined process for handling salary holds ensures that employees are notified in advance, corrective actions are clear, and payments are released promptly once the issue is resolved, maintaining trust and transparency in payroll management.