Payroll Lock January 2026 Explained

Why salary, tax, and allowance changes stop after this

⚡ Quick Answer: What is Payroll Lock?

Payroll Lock is the internal cutoff after which departments stop allowing changes to salary, tax, and allowance records for the financial year.
For most Central Government offices, this happens in January to finalize February–March payroll.

Every January, employees are told:
“Now it’s locked.”
“No changes possible.”
“Adjust in ITR.”

But what exactly gets locked — and what doesn’t?
Here’s the **clear breakdown**.

What STOPS After Payroll Lock

• ❌ Income tax proof corrections
• ❌ HRA / 80C / 80D updates
• ❌ Allowance corrections (HRA, TA)
• ❌ Salary structure changes

What CONTINUES Even After Payroll Lock

• ✅ Tax recovery in Feb–March
• ✅ ITR filing and refund later
• ✅ Pension / retirement processing
• ✅ Next financial year corrections

Why Payroll Lock Exists

Payroll lock is not punishment.
It exists because:

• Accounts must close annual tax
• Government payroll systems need final data
• February–March have limited adjustment window

What You Should Do BEFORE Payroll Lock

• Verify tax proofs
• Confirm Old vs New Tax Regime
• Resolve HRA PAN issues
• Respond to HR/DDO queries immediately