Definition of Cut-Off Day

The Cut-Off Day is the day or limit that is determined as the last day on which any financial transactions that have an impact on the month's payroll are received, and therefore any financial transaction that affects the payroll (such as deducting unpaid leave or starting late work) that is received after this day or limit, its effect will be carried over to the payroll of the next month, to ensure that the transfer of salaries is not delayed from its usual time.

The purpose of defining the Cut-Off Day

To determine the payroll period for each month, so that the payroll period starts from the day following the day of deduction of the payroll of the previous month, to the cut-off day of the current month.

For example, if the cut-off day for the company is the 25th, assuming that the current month is February.

The payroll period (for the month of February) will be affected and include all transactions that took place during the period from January 26 to February 25.

The cut-off day is also considered one of the important criteria in the process of monitoring employees’ discipline with the company's policies, so that companies direct employees to submit their transactions and requests before the monthly deduction day, as well as direct managers to quickly approve pending employee requests, in order to avoid any deductions or transferring the disbursement of any financial dues to the following month.

💡Example

Employee Ahmed submitted a request for additional working hours on February 26, and because the company's policy is that the cut-off day is February 25, the wages for these hours will not be added to the employee's salary for the month (February), but will be carried over and added with the salary for the following month (March).

How to adjust the cut-off day settings

By navigating to the system's settings: 

1- Click on Setting then the Paygroups settings.

2- Select paygroup then select settings.

3- Select edit "Cutoff"

4- Enter new cutoff date then select "Save".