Some companies may wish to deduct from employee allowances (such as Meal Allowance) when employees are absent without valid attendance. In Better HR, this can be configured using the Non-Attendance Deduction Logic.
🛠️ Step-by-Step Setup
1️⃣ Create the Non-Attendance Deduction Column
Go to Settings > Payroll Tab > Deduction Section
Click + Create Custom Deduction
Under Custom Income Type Name, type:
Non-Attendance Deduction on Meal AllowanceClick the right arrow beside Advanced Settings for Payroll Item
Toggle Non-Attendance under Calculation Logics
Under Calculate Based On, select:
Meal Allowance
(Note: The selected allowance must be set to “Regular.” Logic-based allowances will not appear here.)Click Create
2️⃣ Define Deduction Rules in the Policy
Go to Settings > Policies
Select the policy you want to apply this to
Navigate to the Payroll tab
Scroll down to the Deductions section
Locate the column you just created:
Non-Attendance Deduction on Meal Allowance
You’ll see two available deduction methods:
💡 Deduction Methods
1. Ratio of Earning
Formula:
Non-Attendance Days × (Ratio) × Allowance × Profile Multiplier
The ratio is the per-day value based on your payroll cycle.
For example:If the month has 31 days →
1 / 31 = 0.0322580If the month has 30 days →
1 / 30 = 0.0333333
You must manually update this ratio each month based on that month’s total days.
In the Employee Profile, set the Profile Multiplier to 1 (or adjust it as needed if individual scaling is required).
Example:
Meal Allowance: 30,000 MMK
May has 31 days → Ratio =
1 / 31 = 0.03226Scheduled Working Days: 28
Actual Attendance: 27 days → 1 non-attendance day
Deduction =
1 × 0.03226 × 30,000 × 1= 967.80 MMK deducted
2. Flat Rate
Formula:
Non-Attendance Days × Flat Rate Amount × Profile Multiplier
Use this if you deduct the same flat amount per absence.
If all employees have the same flat deduction:
Set the flat rate amount in the policy.
In the employee profile, set Multiplier = 1
If different employees have different deduction amounts:
Set the flat rate amount in each employee’s Payroll Settings
In the policy, set the Policy Flat Rate = 1
