Loss of Pay (LOP / LWP)
Loss of Pay, also called Leave Without Pay, is a deduction when an employee takes leave with no balance in any leave type. Per-day pay is cut from gross.
What is Loss of Pay (LOP / LWP)?
Loss of Pay kicks in when an employee is absent and has no earned, casual, or sick leave left to cover the day. Some companies also mark unapproved absence or no-show as LOP. The deduction is per day, calculated on monthly gross. The most common method is gross divided by total calendar days in the month, so a 30-day month and a 31-day month give slightly different per-day rates. Some employers use a fixed 26 working days or actual working days, depends on policy. LOP also reduces PF wages, ESI wages, and PT slab in some states, since the gross goes down. Repeated LOP without approval becomes a disciplinary issue under the standing orders.
Formula: LOP deduction = (Monthly gross / days in month) x LOP days
Example
Gross ₹60,000 in a 30-day month, 2 LOP days. Per-day = 60,000/30 = ₹2,000. LOP deduction = ₹4,000. Effective gross for the month = ₹56,000.
How Loss of Pay (LOP / LWP) is used
Sync attendance and leave data into payroll before payroll lock. Auto-mark days as LOP if leave balance is zero. Show LOP days and amount on the payslip.
Loss of Pay (LOP / LWP) FAQs
How is LOP per day calculated?
Most employers use monthly gross divided by calendar days in the month. Some use 26 days. Check your HR policy.
Does LOP affect PF?
Yes. PF wages drop because gross drops, so PF contribution for that month is lower.
Can LOP be reversed?
Yes, if the leave is regularised in the next cycle. Most payroll systems can reverse LOP and pay the amount in the following month.