Leave Calculation In Salary Slip
There are two types of leave which user can apply for.
- Paid Leave (Sick Leave, Privilege Leave, Casual Leave etc.)
- Unpaid Leave
When Employee is out of paid leave, he create Leave Application for unpaid leave. The term used for unpaid leave in ERPNext is Leave Without Pay (LWP). These leaves does have impact on the Employee's Salary Slip.
- Setup Employee
- Allocate him paid leaves
- Create Salary Structure for that Employee. In the Earning and Deduction table, select which component of salary should be affected if Employee takes LWP.
- Create Holiday List (if any), and link it with Employee master.
When creating Salary Slip for an Employee, following is what you will see:
Working Days: Working Days in Salary Slip are calculated based on number of days selected above. If you don't wish to consider holiday in Working Days, then you should do following setting.
Uncheck field "Include Holidays in Total No. of Working Days"
Leave Without Pay: Leave Without Pay is updated based on Leave Application made for this Employee, in the month for which Salary Slip is created, and which has Leave Type as "Leave Without Pay".
Payment Days: Following is how Payment Days are calculated:
Payment Days = Working Days - Leave Without Pay
As indicated above, if you have LWP checked for components in the earning and deducted table, you will notice a reduction in Amount based on no. of LWP of an Employee for that month.