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How does loss of pay for unpaid/excessive leave work?
How does loss of pay for unpaid/excessive leave work?
Aditya Morarka avatar
Written by Aditya Morarka
Updated over a week ago

This article is applicable only if your organization is using our Leave & Attendance feature.

There are 3 options for adding loss-of-pay based on attendance, and you can select the option that you want from Settings > Holidays, Leaves & Attendance -

  1. Automatic addition of loss-of-pay by XPayroll

    If you enable this option, then XPayroll will automatically add loss-of-pay for your employees for the payroll month on the basis of unpaid leaves in their attendance. The loss-of-pay is calculated as

    [salary] * [number of unpaid leaves] / [total number of days in the month].

  2. Manual addition of loss-of-pay based on our suggestions

    If the option for automatic loss-of-pay is disabled, then you can use our LOP suggestions report under Reports > Attendance > Payroll Adjustments. These suggestions are based on the same logic as the automatic adjustments, and you can manually select which loss-of-pay to add to the payroll.

  3. Manual addition based on manual input

    If you want completely manual control on loss-of-pay, then the same can be done by adding a deduction manually. Please keep the option for automatic loss-of-pay disabled if you opt for this option.

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