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How to Set Up Monthly Late Deduction (Using Auto Calculation Logic)

Written by Myo Zaw Hein
Updated today

Overview

Monthly Late Deduction is designed for companies that allow employees a certain amount of late time within a month before deductions apply.

For example, a company may allow 30 minutes of lateness per month. Once an employee exceeds this limit, the system will automatically calculate and apply deductions based on the configured rules.

This feature helps ensure fair and consistent payroll processing while giving employees some flexibility.


Step 1: Create the Late Deduction Column

  1. Go to Settings > Payroll Tab > Deduction Section

  2. Click + Create Custom Deduction

  3. Under Custom Income Type Name, enter: Monthly Late Deduction

    After that click the right arrow beside Advanced Settings for Payroll Item

  4. Toggle Monthly Late under Calculation Logics

  5. Under Calculate Based On, select:

    • Basic Salary, or

    • Any manual allowances you want to include in the calculation

  6. Click Create


Step 2: Set Late Deduction Rules in the Policy

  1. Go to Settings > Policies

    Select the policy you want to apply

  2. Navigate to the Payroll Tab

    Scroll to Deductions and locate Monthly Late Deduction

Configure Key Settings

  • Max Late Minutes
    → Enter the total late minutes allowed for deduction calculation

  • Grace Minutes
    → Enter the allowed late minutes per month before deductions start


Apply Eligibility (Optional)

You can control which employees this deduction applies to by selecting:

  • Eligible Position Check

  • Eligible Position Badge Check

  • Eligible Job Grade Check


Step 3: Choose Calculation Method

You can choose between two calculation methods:


1️⃣ Salary-Based Table

This method calculates deductions based on the employee’s salary.

  • Define time ranges using:
    From (<) and To (≤)

  • The system formula is:

    Basic (Salary / Working Days / Working Hours / 60 minutes) × Profile Multiplier

  • Click + Add Condition to create multiple rules

Example:

  • 0 to 15 minutes → Deduction = Salary-based formula

  • 15 to 30 minutes → Deduction = Salary-based formula


2️⃣ Fixed Rate Table

This method deducts a fixed amount based on late minutes.

  • Define time ranges using:
    From (<) and To (≤)

  • Enter a fixed deduction amount

  • Click + Add Condition to add more tiers

Example:

  • 0 to 15 minutes → 500 MMK

  • 15 to 30 minutes → 1000 MMK

(All amounts will be multiplied by the Profile Multiplier if configured.)


Step 4: Save the Policy

After completing all configurations:

  1. Click Update Policy

  2. The Monthly Late Deduction will now be automatically applied during payroll calculation

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