By default, Better HR automatically deducts absences from the Basic Salary. However, if your company wants to deduct absences from other allowances, such as Meal Allowance, you can easily configure this using deduction logic.
🛠️ Step-by-Step Setup
1️⃣ Create a Custom Deduction Column
Go to Settings > Payroll Tab > Deduction Section
Click + Create Custom Deduction
Under Custom Income Type Name, enter:
→ Absent Deduct on Meal AllowanceClick the right arrow beside Advanced Settings for Payroll Item
Toggle “absent” under Calculation Logics
Under Calculate Based On, select Meal Allowance
📌 Note: The selected allowance must be a regular allowance (not one that already uses logic).
If your allowance is logic-based (e.g., Attendance Bonus or Attendance-Based Allowance), it will not appear in this list.
Click Create to save.
2️⃣ Define Deduction Rules in the Policy
Go to Settings > Policies
Select the policy you want this deduction to apply to
Open the Payroll tab
Scroll down to the Deductions section
Locate the Absent Deduct on Meal Allowance column you created earlier
You’ll see three available Deduction Methods. Choose the one that fits your company’s policy.
⚙️ Deduction Method Options
Method | Formula | Description |
Deduction Day-Rate |
| Calculates the deduction based on the daily rate of the allowance. |
Flat Rate |
| Deducts a fixed amount per absent day. |
📝 After entering the deduction logic values, click Update to save the configuration.
