Allowance days and unpaid absences: the payroll rules

Employment income allowances must be pro-rated to the days that carry an entitlement to pay: public holidays, weekly rest days and paid absences stay in the count, while unpaid absences (unpaid leave, unpaid time off) reduce it.

This bears directly on payroll processing: miscounting allowance days produces year-end adjustments and disputes. It is worth reviewing payroll software settings periodically, especially where unpaid leave or vertical part-time arrangements are involved.

Summary note by Studio Ponchio, based on specialised tax sources. The text does not reproduce the original contributions and does not constitute professional advice.