By default, the system automatically deducts unpaid leave from Basic Salary. However, if your company wants to deduct unpaid leave from other allowances like Meal Allowance, Better HR allows you to configure this using deduction logic.
🛠️ Step-by-Step Setup
1️⃣ Create the Custom Deduction Column
Go to Settings > Payroll Tab > Deduction Section
Click + Create Custom Deduction
Under Custom Income Type Name, type:
Unpaid Leave Deduct on Meal AllowanceClick the right arrow beside Advanced Settings for Payroll Item
Toggle Unpaid Leave under Calculation Logics
Under Calculate Based On, select
Meal Allowance📌 Note: The selected allowance must be a regular one (not using logic). If your allowance uses logic (like Attendance Bonus or Attendance-Based), it won't appear in the list.
Click Create
2️⃣ Define the Deduction Rules in the Policy
Go to Settings > Policies
Select the policy you want to apply this deduction to
Go to the Payroll tab
Scroll down to the Deductions section
Locate the
Unpaid Leave Deduct on Meal Allowancecolumn you created
You'll see three deduction method options. Choose the one that suits your policy:
⚙️ Deduction Method Options
Method | Formula | Description |
Deduction Day-Rate |
| Deducts based on the allowance's daily rate |
Custom Day |
| You define the day base (e.g., 30 or 26) for calculation |
Flat Rate |
| You set a fixed amount to deduct per leave day |
📝 After entering the deduction logic values, click Update to save the configuration.
