If your company deducts salary or allowances for employees who arrive late, you can automate this using the Late Deduction Logic in Better HR.
🛠️ Step-by-Step Setup
1️⃣ Create the Late Deduction Column
Go to Settings > Payroll Tab > Deduction Section
Click + Create Custom Deduction
Under Custom Income Type Name, type:
Late DeductionClick the right arrow beside Advanced Settings for Payroll Item
Toggle Late under Calculation Logics
Under Calculate Based On, choose
Basic Salaryor select any manual allowances you want to use for the calculationClick Create
2️⃣ Set Late Deduction Rules in the Policy
Go to Settings > Policies
Select the policy you want to apply this to
Go to the Payroll tab
Scroll to Deductions and locate the
Late Deductioncolumn you created
You’ll see two calculation methods:
Ratio of Earning
Flat Rate
⚙️ Define the Deduction Parameters
Max Late Minutes
Enter the total number of minutes considered for late deductions.
➤ Example: If your working hours are 9 AM to 5 PM (8 hours), set this to 8×60 = 480Grace Minutes
Time allowed before deduction applies.
➤ Example: Allow up to 10 minutes late without deduction → set grace to 10
Calculation Methods
✅ Ratio of Earning Method
Use this if you want the deduction amount to be proportional to salary or a specific allowance.
Formula:
(Late Minutes - Grace Minutes) × Ratio of Earning × Base Salary
How to calculate the Ratio of Earning per minute:
If your payroll is based on the number of days in the month:
For 31 days and 8 working hours/day:
1 / (31 × 8 × 60) = 0.0000672This means each minute equals
0.0000672of the base salaryYou’ll need to adjust this ratio manually each month based on the number of days and working hours
✅ Flat Rate Method
Use this if you want to deduct a fixed amount per late minute.
Formula:
(Late Minutes - Grace Minutes) × Flat Rate
Set a fixed deduction amount per minute (e.g., 200 MMK per late minute)
Useful if deduction rules are straightforward and consistent
3️⃣ Save the Policy Settings
After setting the calculation logic and amounts, click Update Policy to apply the changes.