Loss of pay is done when an employee does not come to work and apply for leave. It means, no salary will be paid for a particular day. Loss of pay calculation is based on the calendar day logic. If your company follows the calendar day logic, make sure that you record dates pertaining to the days for which loss of pay should be applied for a member of staff. For example, let us assume that the payroll supervisor wishes to apply 1-day loss of pay for a worker in May payroll. It is important for the payroll supervisor to know to which month the loss of pay pertains. Depending on the month, the loss of pay amount would change. If the worker has a monthly salary of Rs. 31,000 on which loss of pay has to be applied, the amount for one-day for the month of April is Rs. 1,000 (Rs. 31,000/31 days) while the value of per day salary in June is Rs. 1033 i.e. Rs. 31,000/30.
Loss of pay meaning:
Loss of pay meaning in simple words can be stated as for leave taken by the employee when he/she does not have leave balance in his/her account and but given permission to remain absent. So this absence is authorized one. If an employee has no enough leaves to his credit, the employer can permit leave without pay. There cannot be any tough rule for prerogative and availing of leave without pay. It is purely an unrestricted power of the employer to grant leave without pay. Therefore, if the reason for taking leave without pay is genuine, the manager can sanction it without any constraint. On the other hand, without a sanction of such leave shall be viewed as a serious misbehavior also.
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