In payroll settings under Pro-rata salary, there are:
- Payroll Cutoff date
- Unpaid Leave Cutoff date
Payroll Cutoff date and Unpaid Leave Cutoff date will only be applicable to 3 groups of employees:
- Newly joined employees
- When there is a newly joined employee, the calculation of salary will be based on the joined date until the cut-off date.
- For example, an employee joined on 28th of September and payroll cut-off date is 26th of each month.
- The salary will be pro-rated from 28th of September until 26th of October.
2. Terminated employees
- When there is an terminated employee, the calculation of salary will be based the cut-off date until the last working day.
- For example, employee is being terminated on 15th of September and payroll cut-off date is 26th.
- The salary will be pro-rated from 27th of August until 15th of September.
3. Employees that applied for unpaid leaves
If the Unpaid Leave cut-off date is 23rd,
- Any unpaid leaves that were applied before 23rd of each month, will remain in the current month's payroll.
- Any unpaid leaves that were applied after 23rd, will be moved to next month's payroll.
These 2 cut-off dates will only work for single payroll cycle.
Hope it helps!
Complete guide: Payroll module
Have doubts setting up Payroll module? Check this out!
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