Contents of this article are applicable to the following users
Tier: N/A
Product: Payroll
Platform: Web
Access Level: Owner
Our payroll now synchronizes with the leave engine where unpaid leave can be pulled into payroll.
This guide will cover the following:
Things to prepare before processing payroll
Before processing payroll you need to:
Make sure that Unpaid Leave is properly setup as the following:
Make sure that “Working Days” and “Unpaid Leave” are set to “Yes”
If you haven’t set up Unpaid Leave, go to Settings > Off and Leave > Add Leave.All unpaid leaves within the month are approved or properly assigned to staff on schedule or timesheet.
Create a pay item with the following setting:
Pay item name: Unpaid Leave
Note: Pay item name can be changed to your preference.Category: Gross Deduction
CPF Type: Ordinary Wage
IR8A code: Gross Salary
Amount type: Attendance based
Timesheet column: Unpaid leave days
Rate: Incomplete Month Pay Daily Rate (Singapore)
Where: Incomplete Month Pay Daily Rate = Monthly gross rate of pay ÷ Total working days in a month.Note: For users who are already using this setting, we have migrated to "Incomplete Month Pay Daily Rate (Legacy - Singapore)" and retained the calculation. To use the most updated rate, please change to "Incomplete Month Pay Daily Rate (Singapore)".
Multiplier: 1
(optional) Assign staff who are eligible for unpaid leave to the corresponding pay item. Learn more on how to tag pay item to staff.
During payroll, staff will have “unpaid leave” deduction automatically.
After creating a payroll
If staff already tagged to pay item
Each staff will have “unpaid leave” in their payroll details if they are already tagged to the “Unpaid Leave” pay item.
If staff not tagged to pay item (manual add)
Find staff who took unpaid leave on Timesheet
When you edit the payroll, click on the “Add Pay Item” dropdown and select “Unpaid Leave”.
How to manually calculate unpaid leave deduction
Unpaid leave deduction will be based on the Monthly Gross Rate of Pay. The formula for Unpaid Leave Pay might depends on your organization policy. Here's the recommended calculation by MOM:
(Total days of unpaid leave taken within the period ÷ Total working days in that period) x Monthly Gross Rate of Pay
Example:
Period: 1 June 2024 - 30 June 2024
Staff’s working days per week: 5 days
Total working day in the period: 20 days
Total days of unpaid leave taken: 3 days
Staff’s monthly gross rate of pay: $1,000
Unpaid leave deduction in the period = (3 days ÷ 20 days) x $1,000 = $150
Note: When calculating the gross rate of pay, ensure that all allowances except for travel, food, and housing allowances are included.
Alternatively you can use MOM Calculator for more accurate calculation.
FAQ
Q: My staff joined the company in the middle of the month, how does the system calculate it?
A: If a staff joined in the middle of the month:
The system will automatically prorate via Days Worked/Working Days settings that's being set into that specific staff.
Days worked means that the staff have a Clock In/Clock Out records or a paid leave taken/assigned on that specific period.
So if there's an Unpaid Leave on that period, it will not be counted towards day worked.
So our recommendation for such case is that you do not tag Unpaid Leave deduction pay item for new joiner at least until they're done with their first month period.