We currently have three different proration policies in the Malaysia Payroll - Working days, Calendar days, and Fixed days. Payrun will be computed based on the company’s saved proration policy but still following the normal payroll period by month.
With the recent enhancement, we now have a Monthly Payrun Cut-Off Date option, wherein you can choose to set your own Payrun Cycle or Payroll Cut-Off Date. The Configuration page has been updated to reflect the new section.
To set the Cut-Off date, please follow the steps below:
Step 1: Go to .
Step 2: Click on .
Step 3: On the tab, go to
sub-tab.
Step 4: Scroll down and look for the Monthly Payrun Cut-Off date section. Tick the box to enable the setting, set the date, and save.
From the setting above, the set payrun date is the 23rd of each month. This means that the payroll period spans from the 24th of the previous month up to the 23rd of the current month. e.g. April 24, 2023 to May 23, 2023
Below are 4 different scenarios where the Monthly Payrun Cut-Off date update would affect the payrun:
1. Normal Payrun User
2. New Joiner
3. Resignee
4. Salary Increment
Normal Payrun User
If the staff has already been confirmed during the payroll period, the payrun computation will not be affected. Employee will receive the normal Basic Pay.
New Joiner
For any new joiners, a proration will apply for the months affected if the staff joined within the monthly payrun period.
Example:
Join date: April 26, 2023
Cut-off date: 23rd
Payrun: May 2023
Proration Policy: Working days
Work Week: 5 Days
Basic Pay: 8,000
Actual Working days April: 3 days
Actual Working days May: 17 days
Calculation:
April - 8000 / 20 = 400 * 3days = 1,200
May - 8000 / 23 = 347.8260 * 17days = 5,913.04
TOTAL = 1,200 + 5,913.04 = 7,113.04
Resignee
There will be proration for the months affected if the staff resigns within the monthly payroll period.
Example:
Cessation date: May 15, 2023
Cut-off Date: 23rd
Payrun: May 2023
Proration Policy: Working days
Work Week: 5 Days
Basic Pay: 8,000
Actual Working days April: 5 days
Actual Working days May: 11 days
Calculation:
April - 8000 / 20 = 400 * 5days = 2,000
May - 8000 / 23 = 347.8260 * 11days = 3,826.086
TOTAL = 2,000 + 3,826.086 = 5,826.086
Salary Increment
There will also be proration for the month if the staff received a salary increment within the monthly payrun period.
Example:
Salary Effectivity date: May 15, 2023
Cut-off date: 23rd
Payrun: May 2023
Proration Policy: Working days
Work Week: 5 Days
Basic Pay: 8,000
Actual Working days April: 5 days
Actual Working days May: 17 days
Calculation:
April - 8000 / 20 = 400 * 5days = 2,000
May (Before Salary Change) - 10 days
8,000 / 23 = 347. 8260 * 10days = 3,478.260
May (After Salary Change) - 7 days
10,000 / 23 = 434.7826 * 7days = 3,043.4782
TOTAL = 2,000 + 3,478.260 + 3,043.4782 = 8,521.74