HRSINGAPORE Community Discussions

Prorated Fixed Montly Allowances

Question

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?

Thank you.

JY


Reply 1

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.

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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