Streamlining Payroll with Empress's Leave Encashment Feature

Guides & Tutorials
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Introduction

As a business user of Empress, you may occasionally need to convert your employees’ unused leaves into salary payments. This feature, termed Leave Encashment, allows you to automatically calculate and add the value of unused leaves to an employee’s salary slip.

Benefits of Leave Encashment

Leave Encashment serves a dual purpose for your business. Firstly, it provides an incentive for employees to use their leave days judiciously, knowing that unused leaves can be converted into extra income. Secondly, it simplifies the process of managing and tracking leave usage and payroll, by automating the calculation and addition of unused leave value to salary slips.

How to Use Leave Encashment

To use this feature, follow these straightforward steps:

  1. Enable Leave Encashment:

    • Go to the Leave Type settings.
    • Enable the ‘Allow Encashment’ option for the leave type that will be subject to encashment.

  2. Add to Leave Policy:

    • Go to the Leave Policy settings.
    • Add the encashable leave type to the policy.
    • Assign this policy to the relevant employee(s) by going to the Leave Policy Assignment section.
    • Submit the assignment. The leaves will be automatically allocated.

  3. Prepare for Leave Encashment:

    • Ensure that a Salary Structure is assigned to the relevant employee(s).
    • Add the ‘Leave Encashment Amount Per Day’ to the same Salary Structure.

  4. Assign Salary Structure:

    • Assign the updated Salary Structure to the relevant employee(s).

  5. Create a Leave Encashment:

    • Go to the Leave Encashment section.
    • Create a new Leave Encashment.
    • Ensure the date of the Leave Encashment falls between the ‘From Date’ and ‘To Date’ in the Leave Allocation.
    • The ‘Encashment Amount’ will be automatically calculated when you save the Leave Encashment.

  6. Finalize the Leave Encashment:

    • Submit the Leave Encashment. An Additional Salary will be automatically created.
    • When you create a Salary Slip, the Leave Encashment amount will be added along with other earnings.
    • Use the ‘Preview Salary Slip’ button to confirm the inclusion of the Encashed leaves in the Salary Slip before submitting it.

Summary

The Leave Encashment feature is a versatile tool that allows you to incentivize efficient leave usage and streamline your payroll processes. It offers a user-friendly interface and automatic calculations, reducing the time and effort required to manage leave and payroll. For additional support, visit the Empress Help Center or reach out to our customer support team.