The Effective From date determines when a benefit, allowance, or deduction becomes active. Whether it’s included in a pay run depends on whether the effective date falls within the payroll period, not the pay date.
✅ When will the item be included in payroll?
If the Effective From date falls on or between the period start and period end, it will be included in that payroll.
Example:
Period start: Jan 1, 2024
Period end: Jan 15, 2024
Effective from: Jan 2, 2024 ✅ → Included
Effective from: Jan 15, 2024 ✅ → Included
Effective from: Jan 16, 2024 ❌ → Not included
💡 Special case: bi-weekly schedules
Even if the pay date falls after the period, only the period dates determine whether an item is active.
Example:
Period start: Dec 30, 2023
Period end: Jan 11, 2024
Pay date: Jan 14, 2024
Effective from: Jan 5, 2024 ✅ → Included
Effective from: Jan 13, 2024 ❌ → Not included (even though it’s before the pay date)
💡 Tip: Always align the Effective From date with the pay period, not the pay date, to ensure payroll items are triggered when expected.
Disclaimer: This article is not intended to provide tax, legal, benefits, financial, or HR advice. Since laws and regulations are subject to change and may differ by location, please consult a legal or HR professional for personalized guidance.