HRSINGAPORE Community Discussions
Prorated Fixed Montly Allowances
Dear all HR practitioners,
May I know what is your company practices if you have employee apply for 3 days unpaid leave for the particular month, did you prorated his/her fixed monthly allowances (eg, handphone allowance, housing allowance, transport allowance) or you will still pay them the allowances in full?
This will very much depends on your company’s employee policy and a few factors as below:
- What is the population of employee taking unpaid leave?
- What is the trend? Is there increasing number of employees taking more unpaid leave?
- Cost of deduction (Time is usually neglected as a cost). To study if it make sense to do the deduction if it’s one staff and a new workflow needs to be introduced just for that one or few employees.
There are companies that do deduct fixed allowances (Mobile and Transport) if 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.
We pay the prorated amount.
We just deduct the NPL, other minorities are too petty and even time consuming.
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