Introduce a new "Sabbatical Leave Schedule" option into the existing list of leave/payroll schedules. This will allow HR/Payroll teams to assign a sabbatical leave status to employees and have the system automatically calculate and adjust the following:
Functional Requirements:
Leave Days Input
A field to input the number of sabbatical leave days taken within the month.
Automatic Pay Adjustment
System should automatically calculate 50% of the employee's pay for the sabbatical days.
This 50% reduction should be pro-rated based on basic pay and applied only for the days on sabbatical.
The calculated deduction should reflect clearly in the monthly payroll.
Pension and Tax Considerations
Pension contributions (both employee and employer) should be based on the adjusted pay figure(New Basic Pay + Sabbatical Pay)
Tax (PAYE) should still be calculated using the adjusted pay figure (post-sabbatical deduction), to reflect accurate earnings for the month.
Audit Trail / Logs
All sabbatical deductions and changes should be logged and viewable in the payroll history for auditing purposes.
User Flow (Example):
HR selects an employee and adds a Sabbatical Leave Schedule for July.
They enter "10 days" of sabbatical leave.
The system calculates 50% of 10 days' worth of basic salary and deducts that from the monthly gross.
Pension % calculate based on the new total pay of Basic Pay + Sabbatical Pay * EE & ER %.
Tax is calculated on the adjusted pay.
Payslip clearly shows:
Sabbatical Leave Pay Adjustment
New pension contributions
Adjusted tax
Net Pay
Benefits:
Reduces manual intervention or risk of errors in payroll.
Ensures compliance with company sabbatical leave policies.
Transparent and auditable payroll process for special leave types.
Describe the Challenge | At the moment, we manually do this calculation which can lead to human error |