Prior to checking the Basic Pay, including the NPL calculation, do check your Deduction method for NPL. This method will determine the days that will be divided by the Basic Rate.
If the NPL is ticked in the allowance table, the Basic Pay with NPL calculation will be as below:
(Assumed the deduction method for NPL is Rate / No. of days in the month)
Basic Pay = Basic Rate - NPL
Basic Pay = Basic Rate - [(Basic Rate + Allowance / 30 days) x NPL days]
Basic Pay = RM 2,300 - [((RM 2,300 + RM700) / 30 days) x 5days]
Basic Pay = RM 1,800
If the NPL is unticked in the allowance table, the Basic Pay with NPL calculation will be as below:
(Assumed the deduction method for NPL is Rate / No. of days in the month)
Basic Pay where the NPL Calculation without allowance:
Basic Pay = Basic Rate - NPL
Basic Pay = Basic Rate - [(Basic Rate / 30 days) x NPL days]
Basic Pay = RM 2,300 - [(RM 2,300 / 30 days) x 5days]
Basic Pay = RM 1,916.67
Payroll Processing: Calculation method for basic pay with NPL and allowances
Basic rate calculation does not tally with manual calculation
Updated over 3 weeks ago