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Add No pay deduction to payroll from leave management

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This article is for Owners and admins who use Humanised

Overview

  • Automatically calculate and add no pay deductions from leaves logged in syste

Step 1 – Configure company settings for no pay

If you haven’t done this already, go to company settings and set up the following configurations for no pay calculations.

  • Switch on “include leave calculations in payroll” toggle and select leave in system from below.
  • Switch on “No pay” for the organization and select which pay categories will be considered for the no pay rate

Step 2 - Log no pay leaves in system

Admins can start adding no pay leaves for employees under their own discretion. Keeping in mind the pay cycle for your organization makes sure you have added all the no pay leaves that needed to be logged for the length of the pay cycle. Humanised payroll has allowed the admins to add full day no pay leave as well as for a few hours if you choose to do so. There is no starting balance for no pay leaves.

Step 2 - Log no pay leaves in system

When you create a payrun, the system will look for all the no pay leaves you have logged for that pay cycle for each employee. If there are any no pay leaves, the no pay deduction will be calculated and added to the pay details for relevant employees.

Example:

let’s imagine you are running a payroll under the following parameters, pay cycle start date – 1st of the month, Pay period – June, no.of days per month – calendar days, and no pay rate is calculated from basic salary only.  
If this case if an employee named Kamal has 2 days and 4 hours of no pay and a basic salary of LKR 60,000, No pay rate per hour will be, 

60,000 basic salary /30 days/ 8 hours = 250 per hour 

Therefore, for 2 days and 4 hours of no pay, his deduction will be = LKR 5,000// 

What's next?:

Add No pay deduction to payroll using time attendance data

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