Clan Logo Clan
FREE TOOL

Loss of Pay Calculator

Enter the gross monthly salary and unpaid leave days to get the per-day rate and the LOP deduction. Choose the divisor your leave policy uses: 30 days, actual days in the month, or 26 working days.

Built for HR and payroll teams at Indian companies that deduct unpaid absence from salary.

Salary and absence

Use the gross monthly salary the employee earns, not the annual CTC.

Only days without approved paid leave. A half day counts as 0.5.

Loss of pay result

LOP deduction

₹0.00

Per-day rate ₹0.00
Pay after LOP deduction ₹0.00

Results are shown to the paisa. Payroll software usually rounds to the rupee, so a payslip can differ by ₹1. This calculator does not recompute PF, ESI, or TDS.

How the LOP deduction is worked out

  • Per-day rate = gross monthly salary ÷ divisor
  • LOP deduction = per-day rate × unpaid leave days
  • Pay after LOP = gross monthly salary − LOP deduction

A mid-month joiner or leaver is usually paid for the days worked on the same divisor, which is the same formula applied to a partial month. Once the LOP figure is set, the salary slip generator shows the LOP days on the payslip.

Where LOP calculations go wrong

  • Using CTC instead of gross. CTC includes employer PF, the gratuity provision, and insurance cover that are not paid monthly, so this overstates the deduction.
  • Counting weekly offs as unpaid. Only unpaid working days count, unless the policy has a written sandwich rule.
  • Mixing divisors. Using 30 for the rate and 26 for the days, or changing the divisor from one month to the next.
  • Forgetting the PF and ESI knock-on. In most setups both contributions are computed on pay actually earned, so they fall with LOP too. The PF & ESI calculator shows the revised split.

On Clan, the payroll can run on a standard monthly basis or by working days. Each payslip records which method was used and counts half days correctly, so the LOP line can be traced back to the policy. See Clan's payroll plans for pricing.

Same salary, three divisors

Example: ₹60,000 gross salary, 2 unpaid days, and a 31-day month for the actual-days row.

Divisor Per-day rate Deduction for 2 days Pay after LOP
30 days (fixed)₹2,000.00₹4,000.00₹56,000.00
Actual days (31-day month)₹1,935.48₹3,870.97₹56,129.03
26 working days (fixed)₹2,307.69₹4,615.38₹55,384.62

The same unpaid day can cost ₹2,000 or ₹2,307.69 depending on the divisor, so the policy has to name one.

Frequently Asked Questions

How is loss of pay (LOP) calculated in India?

Divide the gross monthly salary by your divisor to get the per-day rate, then multiply by the number of unpaid days. For a 60,000 rupee salary on a 30-day divisor, one unpaid day costs 2,000 rupees. The law does not set one divisor for ordinary LOP in private companies, so the number your policy uses has to be written into the offer letter or leave policy.

Should loss of pay be calculated on gross salary or CTC?

On gross monthly salary, which is what the employee actually earns in the month. CTC also includes employer PF contributions, the gratuity provision, and insurance cover that are not paid out monthly, so a CTC-based deduction overstates the LOP.

Should I use a 30-day or 26-day divisor for LOP?

Either is common, and neither is mandated for LOP. A 30-day divisor gives the same daily rate whatever the month length. A 26-day divisor treats Sundays as non-working days, and the gratuity formula also uses 26 working days a month. Pick one, apply it to every employee, and state it in the leave policy so each payslip can be explained.

Do weekly offs and public holidays count as loss of pay days?

Not normally. LOP applies to unpaid working days. Weekly offs and holidays are already part of the monthly salary, so they are not deducted unless your policy has a sandwich rule that treats the weekend or holiday between two unpaid days as unpaid too. Apply a sandwich rule only if it is written into policy.

Can loss of pay be recorded as a half day?

Yes. A half-day absence without approved leave is entered as 0.5 unpaid days and calculated on the same divisor. Clan's working-days processing counts half days correctly, and each payslip records which method was used.

Does loss of pay also reduce PF and ESI?

In most payroll setups, yes. PF is calculated on the basic wages earned in the month and ESI on the gross wages paid, so an LOP deduction also lowers those contributions. The exact base depends on your salary structure, so check the figures on the PF & ESI calculator.

More free HR and payroll tools

Book a 15-min payroll demo →