The payroll cycle, and where the days are actually lost
From attendance cut-off to salary credit — a process whose length is set by how long inputs take to gather, not by how long computation takes.
What it is
Freeze inputs, compute, review exceptions, approve, generate payslips and the bank file, pay, then file.
Typical shape
Monthly, with a cut-off around the 25th and credit on the 1st.
The trap
Trying to shorten the cycle by computing faster. The time goes on chasing inputs.
The payroll cycle is the repeating process from attendance cut-off to salary credit: freeze inputs, compute, review exceptions, approve, generate payslips and the bank file, then pay and file statutory returns. Most Indian SMBs run a monthly cycle with a mid-month or month-end cut-off.
How it works in practice
A cut-off on the 25th gives four working days to compute and pay by the 1st — which is comfortable if inputs are approved during the month and impossible if they are not.
What to watch for
The days are lost gathering inputs, not computing. Fix the input flow and the cycle shortens by itself.
How Klok handles it
Klok approves inputs as the month runs, so payroll day starts with data rather than with chasing.
Payroll cycle FAQs
What is a realistic cut-off date?
Late enough to capture the month, early enough to leave working days before credit. The 25th is common; what makes it workable is approving attendance and claims through the month rather than in the final week.
Should we run payroll before month end?
Many employers do, with a cut-off and an adjustment in the following cycle for the tail days. It is a legitimate approach provided the adjustment is systematic rather than remembered.
What are "exceptions" in a payroll run?
Anything the run cannot resolve on its own: missing punches, negative balances, unapproved claims, structures that breach a threshold. Reviewing those is the actual work of payroll day.
Can we change our payroll cut-off date?
Yes, but the transition month needs planning — attendance for a partial period, statutory periods that do not move with you, and employees seeing an unusual payslip. Announce it before it happens.
Should the cut-off be the month end?
A cut-off before month end gives time to process but creates a tail of attendance that lands in the next cycle. Either is workable; what fails is not deciding which and applying it inconsistently.
What if payroll is delayed?
Wage payment timelines are prescribed, and a delay is not merely an internal inconvenience. Statutory deposits carry their own deadlines regardless of when you paid staff.
Stop calculating this by hand
Klok computes it from your own attendance and salary data, every month, with the working shown.