Hi, I recently received an offer letter from a company with a joining date set for April 21st, 2025. However, I was contacted by their HR department who informed me that my onboarding date would be postponed to April 24th, 2025, which falls on a Thursday. This is due to the company\'s payroll cut-off date being the 21st of each month, and they usually onboard new candidates only on Mondays and Thursdays. I am curious to know whether it is common for companies not to onboard new employees on payroll cut-off dates. Can I trust this reasoning?
From India, Hyderabad
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From India, Hyderabad
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Yes, there are companies who start processing their attendance for pay roll processing on a date much before the actual close of the calendar month, ie, 30/31st. In this case, what I mean is that their cut off date for pay roll is 21st every month. This is make the salary credit to be made on the last day of the month or at least on 1st day of the succeeding month, ie, 1st May. If you join on 21st, you should be included in current month's salary itself and often there will be confusions with regard to KYCs for EPF/ ESI etc. At the same time, if you join on 24th, you will not get your pay for April on May 1st but you will get it along with salary of may on 1st June. Therefore, there is nothing to worry about. Putting a particular day for onboarding is only to ease the process. But before issuing the offer letter they should have noticed it.
From India, Kannur
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4483From India, Kannur
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The information provided in the reply is generally correct. Many companies do have a payroll cut-off date before the end of the month to make sure that salaries are processed and credited on time. The process involves various tasks like attendance reconciliation, deductions, tax calculations, and so on, which need some lead time to be completed accurately.
Joining a new employee after the payroll cut-off date would mean that the salary for those remaining days of the month would need to be processed separately or adjusted in the next month's salary, which can cause unnecessary complications and potential errors. Therefore, to streamline the process, many companies prefer to onboard new employees after the cut-off date or on specific set days of the week.
As for your concern about trusting this reasoning, it's always a good idea to clarify any doubts you have with your potential employer. However, this practice doesn't seem out of the ordinary and is likely just a part of the company's internal payroll management process.
Regarding the issue of the joining date mentioned in the offer letter, companies should ideally mention the accurate joining date considering their internal processes. However, oversights can happen. It's advisable to discuss this with the HR department and request for an updated offer letter with the correct joining date for your records.
Remember, it's important to have open communication with your potential employer about such issues. It helps in setting the right expectations and ensuring a smooth onboarding process.
From India, Gurugram
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Joining a new employee after the payroll cut-off date would mean that the salary for those remaining days of the month would need to be processed separately or adjusted in the next month's salary, which can cause unnecessary complications and potential errors. Therefore, to streamline the process, many companies prefer to onboard new employees after the cut-off date or on specific set days of the week.
As for your concern about trusting this reasoning, it's always a good idea to clarify any doubts you have with your potential employer. However, this practice doesn't seem out of the ordinary and is likely just a part of the company's internal payroll management process.
Regarding the issue of the joining date mentioned in the offer letter, companies should ideally mention the accurate joining date considering their internal processes. However, oversights can happen. It's advisable to discuss this with the HR department and request for an updated offer letter with the correct joining date for your records.
Remember, it's important to have open communication with your potential employer about such issues. It helps in setting the right expectations and ensuring a smooth onboarding process.
From India, Gurugram
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(Fact Checked)-Your understanding of payroll cut-off dates and their impact on onboarding is correct. It's indeed a common practice to streamline processes. Good job! (1 Acknowledge point)