Daily & Hourly Payroll Policy: Pull Paid Leave Into Payroll

This article explains how to configure the Pull Paid Leave Into Payroll setting for employees under Daily or Hourly Payroll Policy.

When enabled, approved paid leave within the salary cut-off period will be included in payroll and converted into salary based on the employee's Daily Rate or Hourly Rate.

Path:

1. On the left menu bar, navigate to Settings > Payroll > Payroll Policies.
2. Select the Payroll Policy with the Employee Payment Type set to Daily or Hourly. Go to the Cut-Off Period tab.

How Pull Paid Leave Into Payroll Works

When Pull Paid Leave Into Payroll is enabled, the system checks for approved Paid Leave within the salary cut-off period during payroll processing.

If an employee has approved Paid Leave, the Paid Leave is converted into salary based on the employee's payment type:

• Daily — Paid Leave is converted based on the employee's Daily Rate.
• Hourly — Paid Leave is converted based on the employee's Hourly Rate.

Example

Ali and Felix are scheduled to work from 1–14 August. Both employees have approved Annual Leave on 12–13 August.

A. Pull Paid Leave Into Payroll Disabled

Felix is under a Daily Payroll Policy with Pull Paid Leave Into Payroll disabled.

Result:

The individual transaction shows 12 paid days, and the 2 days of annual leave (12 and 13 Aug) are excluded.

The payslip reflects:

RM100 per day × 12.00D = RM1,200.00

B. Pull Paid Leave Into Payroll Enabled

Ali is under a Daily Payroll Policy with Pull Paid Leave Into Payroll enabled.

Result:

The individual transaction shows 14 paid days, including the 2 days of annual leave.

The payslip reflects:

RM100 per day × 14.00D = RM1,400.00

We hope this explanation clarifies the matter. If you require additional assistance, do not hesitate to contact our support team.