What is Constant Deduction Logic?
In payroll, constant deduction logic is used when a fixed amount is deducted every pay period, regardless of:
Number of working days
Attendance records
Overtime hours
Salary changes
The deduction amount remains the same in every payroll cycle as long as the employee is eligible.
What is a Constant Deduction?
A constant deduction means:
✅ The same fixed amount is deducted in each payroll period
✅ The deduction does not change based on:
Attendance
Overtime
Salary variations
This logic is commonly used for recurring deductions such as:
Loan repayments
Insurance premiums
Union or association fees
Step-by-Step: How to Set Up Constant Deduction Logic
Step 1: Create a Custom Deduction
Go to Settings > Payroll tab > Deduction section
Click + Create Custom Deduction
Under Custom Income Type Name, enter: Loan Repayment
Step 1: Enable Constant Logic
Click the right arrow beside Advanced Settings for Payroll Item
Toggle Constant Logic ON
Under Calculate Based On, select: Salary
Note: You may also select Allowance if the constant deduction should be applied to an allowance instead of salary.
Step 3: Define Deduction Rules in the Policy
Go to Settings > Policies
Select the policy you want to apply this deduction to
Navigate to the Payroll tab
Scroll down to the Deductions section
Locate the newly created column: Loan Repayment
Deduction Methods
Flat Rate Method
Formula:
Flat Rate Amount × Profile Multiplier
Scenario 1: Same Deduction for All Employees
If all employees have the same deduction amount:
Set the Flat Rate Amount in the policy
In each employee’s Payroll Settings, set:
Multiplier = 1
✅ Result: All employees will receive the same constant deduction.
Scenario 2: Different Deduction Amounts for Each Employee
If employees have different deduction amounts:
Set the Policy Flat Rate = 1
In each employee’s Payroll Settings, enter:
Individual Flat Rate Amount
Appropriate Multiplier
✅ Result: Each employee is deducted a different fixed amount while still using constant logic.