Glossary
Pay Cycle
Meaning & Definition
The Pay Cycle is the periodic cycle in which an organization calculates the remuneration of its employees and prepares the payroll. This cycle determines the start and end dates for calculating attendance, leaves, overtime, deductions, and payments before disbursing salaries.
Importance of Pay Cycle
- Ensures timely and organized salary processing.
- Helps calculate employee earnings accurately.
- Supports attendance, leave, and overtime calculations.
- Makes payroll planning and reconciliation easier.
- Helps maintain consistent salary payment schedules.
Legal Compliance & Policies
There are no statutes that relate to the pay cycle. But the employer must make sure that salaries of employees are computed and paid on time according to wage statutes.
