In payroll settings under Pro-rata salary, there are:

  1. Payroll Cutoff date
  2. Unpaid Leave Cutoff date

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Payroll Cutoff date and Unpaid Leave Cutoff date will only be applicable to 3 groups of employees:

  1. Newly joined employees
  • When there is a newly joined employee, the calculation of salary will be based on the joined date until the cut-off date.
  • For example, an employee joined on 28th of September and payroll cut-off date is 26th of each month.
  • The salary will be pro-rated from 28th of September until 26th of October.

2. Terminated employees

  • When there is an terminated employee, the calculation of salary will be based the cut-off date until the last working day.
  • For example, employee is being terminated on 15th of September and payroll cut-off date is 26th.
  • The salary will be pro-rated from 27th of August until 15th of September.

3. Employees that applied for unpaid leaves

If the Unpaid Leave cut-off date is 23rd,

  • Any unpaid leaves that were applied before 23rd of each month, will remain in the current month's payroll.
  • Any unpaid leaves that were applied after 23rd, will be moved to next month's payroll.

These 2 cut-off dates will only work for single payroll cycle.  

Hope it helps!


Complete guide: Payroll module
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