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Leave and Salaried Staff

How Holiday and other leave types differ for staff paid annually, as opposed to hourly

James Denham avatar
Written by James Denham
Updated over a week ago

Paid Leave

In the case of an employee with an annual salary, paid leave does not have an effect on their Total Pay figure at the end of the pay period.

In addition to this, if the employee’s holiday allowance is measured in days, then it’s not strictly necessary to add the number of hours to each day of paid leave to RotaCloud.

However, you’re still able to do this if you want to record the hours of leave taken for any reason.

Unpaid leave

With a salaried employee, unpaid leave of any kind will result in a deduction from the employee's Total Pay. There are two ways in which RotaCloud can calculate the deduction;

Automatic deduction

By default, RotaCloud will automatically calculate the reduction in pay for unpaid leave. This is done by taking the employee’s salary for the entire pay period, and dividing it by the number of working days in the period to obtain a daily figure for pay.

The employee’s Total Pay is then reduced by this daily figure for each day of unpaid leave in the pay period.

Note: In the above example, a ‘working day’ is any day that has not been marked as a Non-Working Day in RotaCloud. For this feature to work correctly, the correct Non-Working Days for the employee must be set up in the system.

Manual deduction

Alternatively, you’re able to manually specify a daily amount to reduce the employee’s pay. A different rate can be set for each Leave Type.

To configure these, head to the Employees page by clicking ‘Company’ and then ‘Employees’. Open an employee’s profile by clicking on their name, and then head to their ‘Wage & Salary’ page.

At the bottom of the Wage & Salary page of a salaried employee, you’ll see a list of ‘Leave Deduction Rates’. Here, you can enter a unique daily rate for each Leave Type, or leave any blank that pays staff at their automatically-calculated daily rate.

A screenshot of the Leave Deduction Rates on a salaried employee's profile. The 'Absence (Unauthorised)' Leave Type has a custom rate entered of £127 per day.
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