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Paycircle Ideas Portal
Categories Payroll Corrections
Created by Michael Olanrewaju
Created on Jul 1, 2025

Sabbatical Leave Schedule Integration

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:

  1. Leave Days Input

    • A field to input the number of sabbatical leave days taken within the month.

  2. 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.

  3. 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.

  4. Audit Trail / Logs

    • All sabbatical deductions and changes should be logged and viewable in the payroll history for auditing purposes.


User Flow (Example):

  1. HR selects an employee and adds a Sabbatical Leave Schedule for July.

  2. They enter "10 days" of sabbatical leave.

  3. The system calculates 50% of 10 days' worth of basic salary and deducts that from the monthly gross.

  4. Pension % calculate based on the new total pay of Basic Pay + Sabbatical Pay * EE & ER %.

  5. Tax is calculated on the adjusted pay.

  6. 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
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