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Leave Management > Frequently Asked Questions > How do I calculate the salary of an employee who is on no-pay / unpaid leave for the month?

If you have a monthly-rated full-time employee who took unpaid leave for the month, they are considered to have performed an incomplete month of work.

When you record unpaid leave for an employee, the system will automatically calculate the amount that has to be deducted, in line with MOM requirements.

The amount to be deducted for each day of unpaid leave will be calculated as basic salary / working days in month.

This deduction will then be multiplied by the number of unpaid leave days taken to arrive at the total deduction for the month.

  • For example: an employee earned $10,000 for December (which had 22 working days in that year) and took 2 days of unpaid leave. Then, the unpaid leave deduction per day = 10,000 / 22 = 454.5454. As a result, the total deduction for the month = 454.5454 x 2 = 909.09. The payslip will reflect Unpaid Leave of 909.09 as a negative income, and Income of 9,090.91, which is 10,000 – 909.09.
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