Disclaimer: The content of this article pertains to the altHR payroll module (not PayrollPanda). As of this date, the altHR payroll module has been discontinued as we form a new partnership with PayrollPanda to bring forth enhanced payroll solutions for our users.


We currently do not have the auto-calculation for unpaid leave yet because our Leaves module is not integrated with the Payroll module yet. Hence, the calculation for unpaid leave has to be manually done


Unpaid Leave calculation: The usual method is to divide the salary by the number of workdays or calendar days in the month to get the daily rate: 

  1. About 22 workdays if the employee works 5 days a week (including public holidays). 

  2. About 26 workdays if the employee works 6 days a week (including public holidays).
  3. If you prefer to divide by the number of calendar days in the month instead of workdays. 


Example calculation of the employee taking 1-day Unpaid Leave.

  • Calculation using 22 workdays in the month:
    = RM 1,100 / 22 (number of workdays in the month) x 1 (day of unpaid leave)
    = RM 50 
    (this is the amount to be deducted from gross salary)

  • Calculation using 26 workdays in the month:
    = RM 1,100 / 26
     (number of workdays in the month) x 1 (day of unpaid leave)
    = RM 42.31 
    (this is the amount to be deducted from gross salary)


  • Calculation using the number of calendar days in the month:
    = RM 1,100 / 30 (number of days in that month) x 1 (day of unpaid leave)
    = RM 36.67 (this is the amount to be deducted from gross salary)



How to add unpaid leave (deduction) to payroll:

  1. On the left panel of your admin dashboard, head to Payroll > Run Payroll.

  2. Click "Manage" on the employee that you would like to add a pay item.  

  3. Under Deductions, click Add Item.
  4. Fill in the details of the new pay item. 

  5. Confirm by clicking Send.



Read more: How to bulk import pay items