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How is daily pay calculated

How unpaid leave deductions are calculated

Yohann Allen avatar
Written by Yohann Allen
Updated over 3 years ago

Upon approval of an unpaid leave request, an automatic pay deduction associated with the specific request is created and reflected on the payroll table.

How is daily pay for unpaid leave calculated?

Daily pay calculation is used to deduct unpaid leave days from an employee's salary.

Daily pay = Salary Amount (Basic + Allowance) / Number of actual working days in the month

NOTE: Number of days could be calendar days if following calendar days leave policy (e.g. 30 days) or working days if following working days leave policy (e.g. 22 working days). The public holidays falling in the month for which daily pay is being calculated will be deducted from the working days to arrive at the actual working days.

For example, if the 2nd and 3rd of December is a holiday on account of National Day, and the leave policy is based on the working days (22 days), then daily pay will be calculated based on 20 days and not 22 days i.e. 2 days will be deducted from 22 days.

Daily Pay = Salary Amount (Basic + Allowance) / 20

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