JustLogin supports three proration policies for Malaysia and Singapore Payroll: Working Days, Calendar Days, and Fixed Days. Payrun is computed based on the company's saved proration policy, following the normal payroll period by month.
The Monthly Payrun Cut-Off Date option lets you define a custom payroll cycle that does not have to start and end on the first and last day of the month. When enabled, the pay period spans from the day after the cut-off date in the previous month up to the cut-off date in the current month.
Note: For MY companies, this feature is available by default. For SG companies, please reach out to our Support team to have it enabled. |
Setting the Cut-Off Date
- Go to
.
- Click on
.
- On the
tab, go to the
sub-tab.
- Scroll down to the Monthly Payrun Cut-Off Date section. Tick the checkbox to enable the setting, select the cut-off date, and save.
In the example above, the cut-off date is set to the 23rd of each month. This means the payroll period runs from the 24th of the previous month to the 23rd of the current month — for example, 24 April 2023 to 23 May 2023.
How Mid-Month Proration Works
Understanding which pay elements are affected by the mid-month cut-off — and how — is important for accurate payroll processing.
Basic Pay
Basic Pay is the only pay element prorated using mid-month logic. Mid-month proration of Basic Pay is triggered when at least one of the following events falls within the pay period:
- An employee's join date falls within the mid-month period.
- An employee's termination date falls within the mid-month period.
- A salary increment takes effect during the mid-month period.
If none of these apply, Basic Pay is not prorated — the full amount is used.
Because a mid-month period (e.g. 24 April – 23 May) spans two calendar months, the system calculates Basic Pay in two portions — one for the April portion and one for the May portion — and adds them together. The basis for this calculation (working days, calendar days, or fixed days) follows the company's configured proration policy.
Other Pay Elements with "Is Prorate" Enabled
All other pay elements that have the Is Prorate flag checked follow the normal (non-mid-month) proration logic. This is a separate process that is not affected by the mid-month setting.
In practice, an employee who joins mid-period will have their Basic Pay prorated using the two-month mid-month split, and their other prorate-flagged elements prorated using the standard logic — both calculations run independently.
In summary: Mid-month mode changes how Basic Pay is prorated (two-month split). All other prorate-eligible pay elements continue to follow normal proration rules, unchanged. |
Scenarios Affected by the Monthly Payrun Cut-Off Date
The following four scenarios illustrate how the cut-off date affects payrun calculations. In each example, the cut-off date is the 23rd, the proration policy is Working Days, the work week is 5 days, and the basic pay is 8,000.
1. Normal Payrun (No Change in Employment or Salary)
If the employee has been continuously employed throughout the entire payroll period with no salary changes, Basic Pay is not prorated. The employee receives their full Basic Pay as normal.
2. New Joiner
If a new employee joins within the payroll period, Basic Pay is prorated across the two calendar months covered by that period.
Example:
| Parameter | Value |
|---|---|
| Join Date | 26 April 2023 |
| Cut-Off Date | 23rd |
| Payrun | May 2023 (24 Apr – 23 May) |
| Proration Policy | Working Days |
| Basic Pay | 8,000 |
- Actual working days in April portion: 3 days
- Actual working days in May portion: 17 days
Calculation:
- April: 8,000 ÷ 20 = 400 × 3 days = 1,200.00
- May: 8,000 ÷ 23 = 347.8260 × 17 days = 5,913.04
- Total = 1,200.00 + 5,913.04 = 7,113.04
3. Resignee
If an employee's last day falls within the payroll period, Basic Pay is prorated for each calendar month portion up to the cessation date.
Example:
| Parameter | Value |
|---|---|
| Cessation Date | 15 May 2023 |
| Cut-Off Date | 23rd |
| Payrun | May 2023 (24 Apr – 23 May) |
| Proration Policy | Working Days |
| Basic Pay | 8,000 |
- Actual working days in April portion: 5 days
- Actual working days in May portion: 11 days
Calculation:
- April: 8,000 ÷ 20 = 400 × 5 days = 2,000.00
- May: 8,000 ÷ 23 = 347.8260 × 11 days = 3,826.09
- Total = 2,000.00 + 3,826.09 = 5,826.09
4. Salary Increment
If a salary change takes effect during the payroll period, Basic Pay is prorated at the old rate for days before the change and at the new rate for days after, split across both calendar months as needed.
Example:
| Parameter | Value |
|---|---|
| Salary Effective Date | 15 May 2023 |
| Cut-Off Date | 23rd |
| Payrun | May 2023 (24 Apr – 23 May) |
| Proration Policy | Working Days |
| Basic Pay (Before) | 8,000 |
| Basic Pay (After) | 10,000 |
- Actual working days in April portion: 5 days
- Working days in May before salary change: 10 days
- Working days in May after salary change: 7 days
Calculation:
- April: 8,000 ÷ 20 = 400 × 5 days = 2,000.00
- May (before change): 8,000 ÷ 23 = 347.8260 × 10 days = 3,478.26
- May (after change): 10,000 ÷ 23 = 434.7826 × 7 days = 3,043.48
- Total = 2,000.00 + 3,478.26 + 3,043.48 = 8,521.74
CPF Treatment for Mid-Month Payruns (Singapore)
For a payrun that spans two calendar months — for example, 22 July to 21 August — the entire payrun is treated as an August CPF submission. All CPF contributions (both employee and employer) are recorded and submitted under August, not July.
This is consistent with CPF Board rules: CPF is attributed to the month in which the salary is actually paid, not the start of the pay period. For example, if the company pays salary on 25 August for the 22 July – 21 August period, CPF is due by 14 September and is counted as August's contribution.