Change Payroll Cut Off

The payroll cut-off period defines the date range used to pull variable transactions such as unpaid leave, overtime, and claims into your current month's payroll.

How to Change the Cut-Off Period

Read more here: Define Monthly Cut Off in Payroll Policy

TABLE OF CONTENTS

Impact of Changing Payroll Cut-Off Period on Salary Calculations

IMPORTANT: Check for Date Gaps

1. Non-Overlapping Cut-Off Periods

2. Overlapping Periods (Recommended)

Impact of Changing Payroll Cut-Off Period on Salary Calculations

1. Fixed Monthly Salary: Changing the cut-off period doesn't change the basic salary amount for monthly-rated employees. It only affects calculation for variable items in Payroll Policy (Overtime, Unpaid Leave, etc.).
     
     
2. Salary Proration: Proration should only apply to employees joining or resigning between the transition dates of the old and new cut-off periods.

Before finalizing the change for the whole company, we recommend to test run payroll processing for one employee first. Once you have verified that the calculations and transactions are accurate, you may proceed with the rest of the company.

IMPORTANT: Check for Date Gaps

When changing your cut-off dates, it's essential to ensure there are no gaps between the old and new periods. Gaps can result in missing transactions that must be handled manually.

1. Non-Overlapping Cut-Off Periods

If the new cut-off period doesn't immediately follow or overlap with the previous one, transactions occurring in the gap will not be pulled into the payroll automatically.

Example:

• In this case, unpaid leave or claim during the gap (26/04/2026 and 30/04/2026) won't be included in either the current or previous month’s payroll and will need to be added manually. 

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• Any unpaid leave or overtime taken between the gap won't appear in payroll. You'll need to add these transactions manually in Individual Transaction.

2. Overlapping Periods (Recommended)

To ensure no data is missed during the transition, your new period must overlap with the previous period.

Example:

We hope this clarifies the matter. If you require further assistance, do not hesitate to contact our support team.