Set up Deduction Rules

Deduction Rules can be configured as below:

1. Go to Preferences.
2. Select Attendance.

3. Click Deduction Rule.

   

4. Click + Add.

   

5. Select Company, Branch, Department, or Position.

   🗨️ Note:

   1. If Payroll is configured at Company level, multiple branches can share the same Deduction Rule.

   2. If Payroll is configured at Branch level, only one Branch can be assigned per Deduction rule.

      

6. Select the Calculation Period: 
   1. If the Payment Schedule is Once a Month, you can choose from three calculation periods for the Allowance payment rule:
      1. Per Day 
      2. Per Month 
      3. Per Time 
   2. If the Payment Schedule is Twice a Month or Weekly. Four calculation periods can be selected for Allowance payment rules:
      1. Per Day 
      2. Per Cycle 
      3. Per Month 
      4. Per Time 
   3. If the Payment Schedule in the salary setting is twice a month or once a week, when selecting the calculation period as per day or per time, two payment schedule options can be chosen: 
      1. Once per month 
      2. Once per cycle 
   4. If the Payment Schedule in the salary setting is twice a month or once a week, when selecting the calculation period as per cycle or per month, no option to select per cycle or per month will be available. Payment Schedule  
   5. 🗨️Note: Calculation Type of Deduction Rule: 

      1. Per Day Calculation: 

         The system checks Attendance daily. If an employee is late or Out Early on a day, a Deduction is applied.

      2. Per Cycle Calculation: 

         The system reviews Attendance within the Payroll Cycle and applies Deductions accordingly.

      3. Per Month Calculation:

         The system reviews Attendance for the entire month before applying Deductions.

      4. Per Time Calculation: 

         The system calculates Deductions case-by -case for each occurrence. A deduction of 7% will be made that day.

7.  Select Calculation Type: 
   1. If Calculation Period is Per Day/ Per Cycle/ Per Month, you may select Calculation Type as:
      1. Late 

      2. Out Early

         

   2. If Calculation Period is  Per Time, you may select Calculation Type as:

      1. Late

         You may specify the number of minutes before the Deduction begins in the Late After/out Early Before field.

         Example: The system will deduct lateness if an employee signs in 15 minutes after the scheduled start time.

         

      2. Out Early

         You may specify the number of minutes before the Deduction begins in the Late After/out Early Before field.

         Example: The system will deduct Out Early if an employee signs out 15 before the scheduled end time.

         

      3. Absent
      4. Leave

      5. Forgot to Scan.

         

   3. More than one Calculation Type can be selected.
      1. If a Deduction Rule for "Forget Scan" is created:
         • The system treats the day as a Working day.
         • The employee is paid.
         • The Deductions is applied based on defined settings.
      2. If no Rule is created:
         • The system treats the day as Absence.
         • No salary will be paid.
      3. Attendance data be reviewed in Timesheet under Total Worked/ Total Absent/ Total Unpaid Leave..

8. Select the Deduction Name for the deduction rule.

   

9. Enable the Deduction rule by ticking the Enable box.

   

10. Tick Calculate on Holiday to apply deductions on Public Holidays.

    Applicable only for Late and Out Early.

    

11. Tick the Calculate On Day Off to apply Deductions on Weekly day off. Applicable only for Late and Out Early.

    

12. Tick Include Shift Break if you want the system to calculate Lateness or Out Early during break times.
    1. If Late is selected, the system checks Lateness after Shift Start Time and after Break Time.
    2. If Out Early is selected, the system checks Out Early before Break and before Shift End Time.

    3. Note

       To calculate during Break Time, a total of 4 time entries are required (Clock in -> Break Out -> Break In -> Clock Out.

       

13. Click "Add Step" to specify the Deduction amount. There are five types of deduction rates that can be defined:
    1. Deduction per minute (Fixed / min)
    2. Deduction per day (Fixed / day)
    3. Deduction based on salary per minute (Salary / min)
    4. Deduction based on half-day salary (Half Day Salary)

    5. Deduction based on full-day salary (Full Day Salary).

       

       You may configure Deduction tiers:

       0-5 minutes late  No Deduction

       5-15 minutes: RM 1 Fixed Deduction per minute.

       15-30 minutes: Half-day salary Deduction.

       30 minutes and Above: Full-day salary Deduction.

       📢 Important Note:

       The system will compare Lateness minutes against the defined tiers and apply the corresponding Deduction.

       Example:

       An employee is late by 17 mins. Based on the Deduction tier above, half a day's salary will be deducted.

14. Once settings are complete, click Save.