Introduction
Welcome to our step-by-step guide on how to efficiently manage employee leaves and understand their salary implications using Empress HR. This feature allows you to streamline your leave management processes, ensuring transparency and accuracy in calculating salaries based on leave data.
Understanding Leave Types in Empress HR
Empress HR provides two types of leaves:
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Paid Leave: These leaves (such as Sick Leave, Privilege Leave, Casual Leave, etc.) are allocated by the HR manager. When an employee applies for leave, the allocated leave quota is reduced accordingly. Importantly, these leaves do not affect the employee’s salary.
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Unpaid Leave: Also known as Leave Without Pay (LWP), these leaves come into effect when an employee’s Paid Leave is exhausted. Unlike Paid Leave, Unpaid Leave affects the employee’s salary.
Please note, merely marking an employee as Absent in the Attendance record doesn’t directly affect their salary, as the absence could be due to paid leave. A Leave Application should be created in case of absenteeism.
Creating a Comprehensive Leave and Salary Management Setup
Follow these steps to manage employee leaves and their impact on salaries:
- Set Up an Employee: Begin by creating an employee profile.
- Allocate Paid Leaves: Assign a certain number of Paid Leaves to the employee.
- Create a Salary Structure: Establish a Salary Structure for the employee. In the Earning and Deduction table, select which salary components should be affected by LWP.
- Create a Holiday List: If applicable, create a list of holidays and link it to the Employee profile.
Calculating Working Days
The number of Working Days in a Salary Slip is calculated based on the information provided above. If you prefer not to include holidays in Working Days, follow these steps:
- Navigate to
Human Resource > Setup > HR Setting - Uncheck the field “Include Holidays in Total No. of Working Days”
Holidays are counted based on the Holiday List attached to the Employee’s profile.
Managing Leave Without Pay (LWP)
LWP is updated based on the Leave Application made for the employee for the month for which the Salary Slip is created, with the Leave Type specified as “Leave Without Pay”.
Calculating Payment Days
Payment Days are calculated as follows:
Payment Days = Working Days - Leave Without Pay
If you have LWP checked for a Salary Component, the salary amount will be reduced based on the number of LWP days for that month.
Summary
With this feature, you can efficiently manage employee leaves and accurately calculate their salaries, enhancing your organisation’s HR and payroll processes. For further assistance, please refer to our additional resources or contact our support team.
Understanding and managing leaves and their impact on salaries is crucial for every business. Empress HR makes this process seamless and transparent, ensuring satisfactory outcomes for both employers and employees.