Ad Hoc is a term used to describe a temporary arrangement made to address a problem or issue. This Latin phrase literally means ‘for this.’ In the context of employee management, ad hoc could be used to speak about a variety of solutions or fixes to an existing challenge rather than a long-term strategy to address it for good. A common arrangement made in this manner includes ad hoc payment.
What is meant by ad hoc payment?
Ad hoc payments are one-time payments issued to their employees by their employers for special purposes. For instance, as a token of appreciation for their dedication during the launch of a new office. Ad hoc payments are not part of the employee's CTC and thus it is not added to the payroll system.
Ad Hoc Payment Types:
Depending on the requirements of the employees, the HR team or the management can decide on the type of ad hoc payments. Here are some common ad hoc payment types
- Gift voucher
- Festive bonuses (Diwali, Christmas, New Year etc)
- Entry tickets for events
- Petrol Allowance
- Performance-based incentives
- Emergency expense coverage
- Night shift allowance
How do ad hoc payments simplify HR's financial management?
Modules
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