How to Manage Time Off Compensation Arrangements

Article author
Learning Center Mekari
  • Updated

In each period, there are employees who will resign from the company. The company can add a policy on compensation for the leave of employees who will resign and who have the remaining balance of their annual leave that can be cashed out.

Here are the steps: 

  1. Click the "Profile" icon at the top right on the Dashboard menu.
  2. Then click "Company Settings".
  3. Click the Payroll menu.
  4. Click the "Time Off Compensation" tab.
  5. Select the type of calculation for leave compensation. If you choose Type Divided by, the calculation nominal per day of time off compensation is calculated based on the component in the "Select Payroll Component" section and the prorate selected in the "Divided By" section.

    Employee A gets a basic salary of IDR 5,000,000 and a fixed allowance of IDR 500,000. PT Digital Talenta determines the number of working days for 20 days. Employee A decides to resign and still has 5 days of leave left. Based on the case above, the employee will receive time off compensation of (5,000,000+500,000)/20×5=1,375,000.

  6. If you choose the Type Amount calculation type, the time off compensation calculation is based on an absolute nominal. So many rupiahs per day of leave left.
  7. Click "Save".

This is an explanation of how to manage leave compensation arrangements. Furthermore, you can learn how to manage resign compensation, here.