Quick answer: The payroll cut-off date is the last date by which attendance, leave, joiners, exits, revisions and claims must reach payroll to be included in this month's salary. Indian employers commonly set it between the 20th and 25th for a salary paid at month-end. Inputs after the cut-off go into the next month's payroll as arrears or recoveries. The cut-off is a company choice, but it must still let wages be paid by the 7th of the following month under the Code on Wages.
Every monthly payroll needs a point at which the numbers stop changing, so that salaries can be calculated, checked, approved and sent to the bank on time. That point is the cut-off. This guide explains what a payroll cut-off date means, the two common cut-off models, how days after the cut-off are handled, a worked timeline for November 2026, how to set a cut-off for your organisation, and the separate cut-offs for tax proofs and bank files.
What is a payroll cut-off date?
A payroll cut-off date (or salary cut-off) is the deadline for changes that affect a pay period. Up to that date, HR, managers and employees can submit or approve inputs; after it, payroll freezes the data and processes the month. The cut-off usually covers:
- attendance, leave and loss of pay;
- new joiners and exits, with their dates;
- salary revisions, promotions and transfers between states;
- overtime, shift and other variable allowances;
- incentives, bonuses and one-time payments;
- reimbursement claims and recoveries such as advances or loans;
- bank account and tax regime changes.
The pay period is the period the salary is for, usually the calendar month. The cut-off is the date inputs for that period stop being accepted. The pay date is when the money reaches employees' accounts.
Two common cut-off models
| Model | How it works | Example |
|---|---|---|
| Month-end salary with an input cut-off | Salary is for the full calendar month; days after the cut-off are treated as worked, and any LOP or overtime in them is adjusted next month | Cut-off 20 November; November paid in full on 30 November; LOP taken on 27 November deducted in December |
| Attendance cycle ending on the cut-off (the payroll cut-off period) | LOP and overtime are counted for an attendance cycle that ends on the cut-off, such as 21 October to 20 November; the salary is still for the month | November salary uses attendance from 21 October to 20 November; days from 21 November fall into December's cycle |
Both are common in India. The first is simpler for salaried staff; the second suits shift-based and hourly workforces where every day's attendance changes the pay. Whichever you use, state it in the payroll policy and keep it the same every month.
How days after the cut-off are handled
- Loss of pay after the cut-off: the month is paid in full, and the unpaid days are deducted in the next month's salary, at the per-day rate of the month in which they occurred. See loss of pay.
- Overtime and variable pay after the cut-off: paid in the next month as an arrear.
- Joiners after the cut-off: their part-month salary still has to be paid by the 7th of the next month, so pay it through an off-cycle run rather than holding it for the next payroll (see pro rata salary).
- Exits after the cut-off: wages due on resignation or termination must be paid within two working days under the Code on Wages, so the final salary is processed separately as part of the full and final settlement.
- Revisions after the cut-off: the new salary applies from its effective date, and the difference for the current month is paid as arrears next month (use the salary arrears calculator).
Example: cut-off and pay date for November 2026
A company pays monthly salaries on the last working day and sets the input cut-off on the 20th. For November 2026:
| Date | Payroll step |
|---|---|
| Fri 20 Nov | Input cut-off: attendance, leave, joiners, exits, claims and revisions frozen |
| Mon 23 – Wed 25 Nov | Payroll processed; variance check against October; exceptions cleared |
| Thu 26 – Fri 27 Nov | Approvals by HR and finance; payslips prepared; bank file generated |
| Mon 30 Nov | Pay date: salary credited |
| Mon 7 Dec | TDS on November salaries deposited; legal latest date for paying November wages |
| Tue 15 Dec | PF and ESI for November paid |
An employee on ₹40,000 a month takes 2 days of unpaid leave on 26 and 27 November, after the cut-off. November is paid in full on 30 November. In December's payroll, 2 days are deducted at November's rate on a calendar-day basis: ₹40,000 ÷ 30 × 2 = ₹2,667. The payslip should show it as an LOP adjustment for November so the employee can see why December's salary is lower. The full monthly calendar of statutory dates is in our payroll compliance calendar.
Is there a legal payroll cut-off date in India?
No law fixes a cut-off date. The law fixes the outcomes the cut-off has to protect:
- Wage period: under the Code on Wages, 2019, a wage period cannot be longer than a month.
- Payment deadline: monthly wages must be paid by the 7th of the following month, and wages due on exit within two working days (section 17).
- Deductions: recoveries made in a later month, including LOP for days after the cut-off, must stay within the Code's limits on deductions and be proportionate to the days missed (section 20).
- Statutory deposits: TDS is deposited by the 7th on salary paid in the month. PF and ESI are paid by the 15th; arrears for an earlier month go in a separate arrear ECR for PF, and are added to the ESI contribution of the month paid without changing ESI eligibility.
So the practical rule is: set the cut-off early enough to pay correctly by your pay date, and never so late that wages slip past the 7th. See our Code on Wages guide for the wider rules.
How to set a payroll cut-off date
- Start from the pay date and count back the working days you need: processing (2 to 3 days), checks and approvals (1 to 2 days), and the bank's funding and file lead time (1 to 2 days).
- Allow for holidays and for the busiest months (March, and months with bonus or increment runs), when you may need an earlier cut-off.
- Set separate deadlines for each input owner: managers for attendance and overtime approval, HR for joiners and exits, finance for claims.
- Publish a payroll calendar for the year with every month's cut-off and pay date, and send reminders two days before each cut-off.
- Write the post-cut-off rules into the payroll policy: how late inputs, LOP, overtime and joiners are handled, and when off-cycle runs are allowed.
A simple way to work out the date, sometimes called a payroll cut-off calculator: cut-off = pay date − (processing + approval + bank lead time) working days. With the pay date on Monday 30 November and 6 working days needed, the cut-off falls on Friday 20 November.
Other cut-offs in the payroll year
- Tax proof cut-off: the date, usually in January or February, by which employees submit proof for the claims in their Form 124 declaration; see our investment declaration guide.
- Bank cut-off time: the time on the day before (or on) the pay date by which the salary file and funds must reach the bank for same-day credit.
- Year-end cut-off: March inputs are often frozen earlier so that the final TDS for the year, the Form 138 statement and Form 130 certificates are correct.
For the full monthly cycle, see our payroll process guide; to check a month's figures, use the monthly salary calculator.
Related reading: Payroll process · Loss of pay · Pro rata salary · Salary slip explained
Run every month to a fixed cut-off. The Complete Indian Payroll Excel Workbook separates current-month inputs from arrears and recoveries, so post-cut-off changes flow cleanly into the next month.
Frequently asked questions
What is the payroll cut-off date?
It is the last date by which changes for a pay period, such as attendance, leave, new joiners, exits, salary revisions, incentives and reimbursements, must reach payroll to be included in that period's salary. Anything received after the cut-off is processed in the next payroll as an arrear or a recovery.
How does payroll cut-off work?
Payroll freezes its inputs on the cut-off date, calculates and checks the salaries, gets approval and sends the bank file before the pay date. Days after the cut-off are usually paid as if worked, and any loss of pay or overtime for those days is adjusted in the following month.
What day is the payroll cut-off?
There is no fixed legal date; each employer sets its own. For a monthly payroll paid on the last working day, the cut-off is commonly between the 20th and the 25th of the month, leaving about a week to process, check, approve and fund the salaries.
What is the difference between pay period and cut-off?
The pay period is the time the salary covers, normally the calendar month. The cut-off is the date on which inputs for that pay period stop being accepted. Some employers also use an attendance cycle, such as the 21st to the 20th, that runs to the cut-off rather than to month-end.
What is the cutoff time for payroll?
Most employers set a time on the cut-off date, often 5 or 6 pm, after which inputs move to the next month. Separately, the bank sets a cut-off time, usually the working day before the pay date, by which the salary file and funds must reach it for credit on time.
What is the cut-off for tax proofs in payroll?
Employers set a separate cut-off, usually in January or February, by which employees must submit proof of investments, rent and loans claimed in their Form 124 declaration. Claims without proof by that date are disallowed for TDS for the rest of the year; if the employee is otherwise eligible (for example, under the old tax regime), they can still claim them in the income-tax return.
Position as of 14 November 2026. Based on the Code on Wages, 2019 (wage period, time of payment and deductions), the Income-tax Act, 2025 and EPFO and ESIC due dates, and common Indian payroll practice. Your payroll policy sets the cut-off and how late inputs are handled. General information, not legal or tax advice.