Paying in Advance for Leave that Occurs in One Payroll Period
Example
A payroll period is from 1 August to 31 August. The regular payroll runs on 31 August.
An employee intends to take leave from 7 to 21 August and requests to receive an advance leave payment on 6 August. The advanced amount is recovered in the same payroll period during the regular payroll run on 31 August.
Paying in Advance for Leave that Spans Multiple Payroll Periods with Recovery in Leave Period
The payroll period is from the beginning to the end of a Gregorian month. An employee requests an advance leave payment for leave that runs from 15 August to 15 September. The employee requests and is granted an advance leave payment on 14 August.
The regular payroll runs on the twenty-fifth day of each Gregorian month. On 25 August, depending on your recovery preferences, the advanced amount is recovered in full.
Paying in Advance for Leave that Spans Multiple Payroll Periods with Recovery When Employee Returns
Example
The payroll period is from the beginning to the end of a Gregorian month. An employee requests an advance leave payment for leave that runs from 15 August to 15 September. The employee requests and is granted an advance leave payment on 14 August.
The regular payroll runs on the twenty-fifth day of each Gregorian month. On 25 September, depending on your recovery preferences, the advanced amount is recovered in full.
Paying in Advance for Leave that Occurs in a Future Payroll Period
Example
In payroll period 3, an employee requests an advance leave payment for leave that he or she intends to take in payroll period 5. The employee is granted an advance leave payment for the future leave period in period 3.
Depending on your recovery preferences, the advanced amount is recovered in full during period 5.
Paying in Advance for Leave Days Plus Worked Days, with Pro-rated Monthly Deductions
Example
The payroll period is from the beginning to the end of a Gregorian month. An employee requests an advance leave payment for leave that runs from 15 August to 10 September. An advance leave payment is made on 14 August.
The employee’s salary is as follows:
Breakdown | Amount in SAR |
Monthly Salary | 3000 |
Deduction | 900 |
In this scenario, the employee receives a payment of SAR 2800, which breaks down as follows:
Breakdown | Dates | Amount in SAR |
Payment for 14 worked days | August 1 to August 14 | 3000 ÷ 31 x 14 = 1354.84 |
Payment for 27 leave days | August 15 to September 10 | (3000 ÷ 31 x 17) + (3000 ÷ 30 x 10) = 2645.16 |
Deduction for August | August 1 to August 31 | 900 |
Deduction for September | September 1 to September 10 | 900 ÷ 30 x 10 = 300 |
Total Advanced Amount (sum of earnings minus sum of deductions) | (1354.84 + 2645.16) − (900 + 300) = 4000 − 1200 = 2800 | |
The regular payroll runs on the twenty-fifth day of each Gregorian month. On 25 August, depending on your recovery preferences, the advanced amount is recovered in full.
Paying in Advance for Leave Days Plus Worked Days, with Full Deductions
u use this procedure in the following situation:
- You want to pay an employee in advance for leave days and worked days.
- You want to deduct money from the advanced amount, for example, for social insurance contributions or loan repayments.
- You want the deductions to be made in full regardless of the absence duration.
Example
The payroll period is from the beginning to the end of a Gregorian month. An employee requests an advance leave payment for leave that runs from 15 August to 10 September. An advance leave payment is made on 14 August.
The employee’s salary is as follows:
Breakdown | Amount in SAR |
Monthly Salary | 3000 |
Deduction | 900 |
In this scenario, the employee receives a payment of SAR 2200, which breaks down as follows:
Breakdown | Dates | Amount in SAR |
Payment for 14 worked days | August 1 to August 14 | 3000 ÷ 31 x 14 = 1354.84 |
Payment for 27 leave days | August 15 to September 10 | (3000 ÷ 31 x 17) + (3000 ÷ 30 x 10) = 2645.16 |
Deduction for August | August 1 to August 31 | 900 |
Deduction for September | September 1 to September 30 | 900 |
Total Advanced Amount (sum of earnings minus sum of deductions) | (1354.84 + 2645.16) − (900 + 900) = 4000 − 1800 = 2200 SR | |
The regular payroll runs on the twenty-fifth day of each Gregorian month. On 25 August, depending on your recovery preferences, the advanced amount is recovered in full.