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
3. Principal Working Days
This method calculates the non-attendance deduction by dividing the allowance amount by the Principal Working Days of the payroll period, then multiplying it by the number of non-attendance days and the employee’s profile multiplier.
Formula
Non-Attendance Days × (Meal Allowance ÷ Principal Working Days) × Profile Multiplier
How Principal Working Days Are Determined
The system automatically assumes Principal Working Days based on the Pro-rating Day-Rate option selected during payroll creation:
Calendar Days
→ Principal Working Days = Total calendar days in the payroll periodWorking Days
→ Principal Working Days = Total working days defined in the payroll period
⚠️ The calculation of Principal Working Days will change depending on which pro-rating option you select while generating payroll.
Profile Multiplier
The Profile Multiplier is configurable at the employee profile level.
You can adjust this value individually for each employee if different deduction weights are required.
Example
Meal Allowance: 100,000
Principal Working Days (Working Days): 20
Non-Attendance Days: 2
Profile Multiplier: 1
Calculation:
2 × (100,000 ÷ 20) × 1 = 10,000
Deduction Amount: 10,000
4. Scheduled Working Days
This method calculates the non-attendance deduction based on the employee’s Scheduled Working Days for the payroll period.
Formula
Non-Attendance Days × (Meal Allowance ÷ Scheduled Working Days) × Profile Multiplier
How Scheduled Working Days Are Determined
Scheduled Working Days are taken from the employee’s assigned work schedule.
The system counts only the working days defined in the schedule within the payroll period.
Rest days and non-working days are excluded from the calculation.
Profile Multiplier
The Profile Multiplier can be configured in each employee’s profile.
This allows different deduction weights to be applied per employee when required.
Example
Meal Allowance: 100,000
Scheduled Working Days: 22
Non-Attendance Days: 2
Profile Multiplier: 1
Calculation:
2 × (100,000 ÷ 22) × 1 = 9,090.91
Deduction Amount: 9,090.91