Definitions of 'Value Date' and 'Pay Date'
When it comes to exporting Bank Files to upload to your corporate banking portal, you might have seen the term “Value Date” and “Pay Date” when using Bank file (GIRO).
Ensuring accurate salary disbursement to employees
When exporting the bank file, the Value Date must be set as 2 working days before the stipulated Pay Date. This is to ensure that your employees receive their salaries by a particular chosen date.
Upload the exported bank file and approve it AT LEAST one day before the Value Date. Usually, employee Pay Dates are around 2 working days after the Value Date.
To help you visualise the setting up of these different dates, here are 2 common scenarios for salary disbursement in Talenox:
1) Employees paid at the end of the week
After processing Payroll for the month, exporting of GIRO Bank File should be done by the 25th with Value Date set for the 26th
Bank File needs to be uploaded and approved in the corporate banking portal by the 25th
Employee salary amounts will be deducted from the corporate bank account on the 26th and will be disbursed to employees over 2 working days
Employees using the same bank as the company will receive their salary in 1 working day (27th); Employees using a different bank will receive their salary in 2 working days (28th)
2) Employees paid across weekends
After processing Payroll for the month, exporting of GIRO Bank File should be done by the 23rd with Value Date set for the 24th
Bank File needs to be uploaded and approved in the corporate banking portal by the 23rd
Employee salary amounts will be deducted from the corporate bank account on the 24th and will be disbursed to employees over 2 working days after the weekend (25th & 26th)
Employees using the same bank as the company will receive their salary in 1 working day (27th); Employees using a different bank will receive their salary in 2 working days (28th)
NOTE: Weekends count as non-working days.