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Questionemployee relationsUrgency: Normal

Which divisor method does your company use for Loss of Pay (LOP) calculations—30 days, calendar days, or actual working days?

Anonymous HR Professional · 18 Aug 2026 · india · Technology · 11-50 employees

When processing monthly payroll deductions for employees who take unpaid leave or exhaust their paid leave balances, organizations typically use different divisor methods to compute per-day pay: a fixed 30-day divisor, the actual calendar days in the month (28–31), or scheduled working days. We are reviewing our attendance and payroll deduction policy to ensure fairness, statutory alignment, and minimal employee disputes.

What they have tried

We reviewed standard HRMS setups across tools like GreytHR and Keka, where fixed 30-day divisors ensure month-over-month consistency, but working-day divisors better reflect true active pay rates. We also looked at how weekend sandwich rules interact with consecutive LOP days.

Desired outcome

Insights from HR and payroll leaders on which divisor method has minimized payroll queries and employee pushback, along with standard practices for handling weekend overlap during multi-day unpaid absences.

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