This guide explains how to set up and manage different leave types in your HRMS/Payroll system, including Paid Leave, Unpaid Leave, and Off-In-Lieu. Proper setup ensures accurate attendance tracking and payroll calculations.

1. Accessing Leave Type Configuration #

1. Log in with HR/Admin permissions.

2. Navigate to:
   Configuration → Types → Leave Types

3. Click Add New Leave Type or Edit an existing type.

2. Leave Type Details #

When creating a leave type, you will configure the following fields:

a. Leave Type Name #

• Example: Annual Leave, Sick Leave, Compassionate Leave, Unpaid Leave, Off-In-Lieu.

b. Calculate Pro-rated #

• Option to prorate entitlement based on employee join date

c. Leave Types #

Choose one of the supported categories:

1. Paid Leave #

• Leave is fully paid.

• No salary deduction.

• Common examples:

  • Annual Leave

  • Sick Leave

  • Hospitalisation Leave

  • Childcare Leave

2. Unpaid Leave #

• Leave is not paid.

• Salary will be prorated based on the employee’s basic salary and total working days.

• Payroll deduction formula:
  Deduction = (Basic Salary ÷ Working Days of Month) × Unpaid Leave Days

3. Off-In-Lieu (OIL) #

• Time-off granted for overtime work, working on public holidays, or special approval.

• Deducts from the employee’s Off-In-Lieu balance.

• Usually paid, meaning no salary reduction as long as OIL balance is available.

3. Paid Leave Configuration #

For Paid Leave, configure the following:

a. Entitlement Settings #

• Add yearly leave entitlement:

  • Example: 14 days per year for Annual Leave.

• Option to prorate based on join date.

b. Approval Workflow #

• Set approver (e.g., Manager → HR).

c. Carry Forward Rules (optional) #

• Define whether unused days can be carried to next year.

• Set expiry date for carried-over leave.

4. Unpaid Leave Configuration #

Unpaid Leave affects payroll:

a. Deduction Method #

System will automatically calculate based on:

• Monthly basic salary

• Total working days for the month

• Number of unpaid leave days taken

Example for January (22 working days):

• Salary: $2,200

• Unpaid Leave: 1 day

• Deduction: 2200 ÷ 22 × 1 = $100

b. Approval Flow #

• Same approval steps as paid leave.

c. Balance / Entitlement #

• Normally no entitlement needed (unlimited/approval-based).

• You may set a limit if your company policy requires it.

5. Off-In-Lieu Configuration #

a. Entitlement Balance #

• Off-In-Lieu days are usually manually credited by HR or automatically added after overtime/PH work.

b. OIL Deduction Rules #

• When employee applies OIL:

  • System deducts from OIL balance.

  • No salary impact (paid leave).

c. Expiry Rules (optional) #

• Set validity period (e.g., OIL expires in 3 months).

d. Approval Workflow #

• Typically: Supervisor → HR.