## Wednesday

### Calculating Unpaid Leave

I checked two sources - your web site and MOM, but the information from these two sources is different.

• MOM formula is based on the number of working days in month when employer takes leave. For example Dec 2008 for 3 days of unpaid leave - salary/number of working days*number of days of unpaid leave \$2000/23*3=\$260.86
• SGHRM formula is based on the daily rate. For example Dec 2008 for 3 days of unpaid leave - \$2000*12/260*3=\$276.92

So which one is correct way? ;o) as per Singapore law?

In order to calculating the the unpaid leave for that particular month, for example, if you have employee who take unpaid leave in December, and you need to calculating the salary for December, you should use the basic salary / total working day of December in order to get the daily rate for December.

However, if you intend to calculate the final payment for the employee who is going to resign, and you notice that he has actually over-utilized the annual leave, you should use the formula of salary *12/260 in order to get the daily rate. This is because you are unable to determine the leave that over-consumed is for which calendar month.