Prorated Fixed Monthly Allowances

Question

Dear all HR practitioners,

May I know what is your company HR practices if you have employees applying for 3 days of unpaid leave for the particular month. Do you prorate fixed monthly allowances (eg, handphone allowance, housing allowance, transport allowance) or still pay them the allowances in full?

Thank you.

Reply 1

This will very much depend on your company’s employee policy and a few factors as below:

- What is the population of employees taking unpaid leave?
- What is the trend? Is there an increasing number of employees taking more unpaid leave?
- Cost of deduction (Time is usually neglected as a cost). To study if it makes sense to do the deduction if it’s one staff and a new workflow needs to be introduced just for that one or a few employees.

There are companies that do deduct fixed allowances (Mobile and Transport) if an employee takes more than x number of days per month. I have heard of 3 days and above or 5 days and above that deduction will be made.

Elvin

Reply 2

We pro-rate.

Susan

Reply 3

We pay the prorated amount.

Li Ting

Reply 4

We just deduct the NPL, other minorities are too petty and even time-consuming.

Dksw

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