Per-day salary basis, LOP and overtime
Choose how a day's salary is worked out (working, calendar, 30 or 26 days), see how loss of pay is pro-rated with a worked example, and switch on overtime pay.
On this page
The per-day salary basis decides how much one day of pay is worth. It is used for loss of pay (LOP), for "% of a day" deduction rules and for overtime. This article explains the options and shows exactly how LOP is calculated.
Before you start
- You need the Run payroll, edit salary, FnF, deduction rules & adjustments permission to change settings.
- Changes apply to payslips generated or recalculated after you save. Approved runs don't change.
Choose the per-day basis
- Go to Payroll → Deduction Rules ( open Deduction Rules).
- Open the Payroll settings tab.
- Under Per-day salary, pick one option:
- Working days in the month — excludes week-offs and holidays (for example 21–23). This is the default.
- Calendar days in the month — 28 to 31 depending on the month.
- Fixed 30 days — the same day rate every month.
- Fixed 26 days — common for six-day work weeks.
- Click Save settings.
How LOP is worked out
- A working day is a day that is not a week-off or a holiday for the employee.
- A working day inside the employment period counts as LOP unless it has attendance credit: present or late = 1 day, half day = ½ day, approved paid leave = 1 or ½ day.
- Earnings are pro-rated once: monthly amount × (1 − LOP days ÷ divisor). The divisor is the basis you picked above.
- Fixed deduction components are not pro-rated.
- Days before joining or after the last working day are simply not paid. They are not counted as LOP.
Worked example
Priya's monthly gross is ₹30,000. The month has 30 calendar days and 22 working days. She has 2 days of LOP.
| Per-day basis | Divisor | Earned gross |
|---|---|---|
| Working days | 22 | 30,000 × (1 − 2 ÷ 22) = ₹27,272.73 |
| Calendar days | 30 | 30,000 × (1 − 2 ÷ 30) = ₹28,000.00 |
| Fixed 30 days | 30 | 30,000 × (1 − 2 ÷ 30) = ₹28,000.00 |
| Fixed 26 days | 26 | 30,000 × (1 − 2 ÷ 26) = ₹27,692.31 |
The payslip shows 2 LOP days and an LOP amount for information. That amount is already taken out of earnings, so it is not deducted again.
Open a payslip from the run and expand How this was calculated. It shows the per-day basis and divisor, the employment dates, LOP days, paid days and each salary version's share.
Days after today with no attendance are counted as LOP. If you create a run before the month is over, recalculate it after month end. The Review tab reminds you with Month not over yet.
Turn on overtime pay
- On the Payroll settings tab, find Overtime pay.
- Tick Pay overtime recorded in attendance.
- Set the Rate multiplier (for example 1.5×), Hours in a work day and Hourly rate based on (Basic salary or Gross salary).
- Click Save settings.
Hourly rate = (basic or gross ÷ per-day divisor ÷ hours in a day) × multiplier. Overtime hours come from attendance — see How attendance works.