Use an unpaid leave earning component to record unpaid leave taken by employees and ensure the payroll system calculates the correct reduction to earnings.
The earning component creates a negative value based on the employee's unpaid leave and deducts the applicable amount from their remuneration. The calculation method depends on the selected input type and the employee's pay structure.
Before creating the earning component, confirm your organisation's unpaid leave policy, calculation method, and the payroll definitions required for processing unpaid leave. Configure the component correctly to ensure accurate payroll results and statutory calculations.
đNOTE: Sage Payroll already includes a predefined unpaid leave pay components you can use. You can edit it to suit your company or create new ones if needed.
Go to Settings.
Select Pay Components.
Select Add Payslip Component.
Select Earning as the payslip component category.
Enter the required details:
Component Name
Payslip Description
Tax Calculation Method
Input Type
Include in OID Report
Include in Payroll Transactions
Select Save.