How this number is made
Unpaid leave on a salary is often the salary divided by the year’s workdays, times the unpaid days. Some employers use 260. Some use 2080 hours. Type the divisor your payroll uses.
- Workdays of 260 is 52 weeks of 5 days. It is a convention.
- Benefits that continue during the leave are not a cash cost in this result.
Formula
Lost pay = salary × unpaid days ÷ workdays.
Worked example
With the figures already in the form, pay given up is $1,346.15.
Questions
Is vacation unpaid?
Only if the policy says so. PTO you have accrued is not this page.
What about exempt employees?
Docking an exempt salary has its own rules. This page is the arithmetic payroll might use, not a judgment that the docking is allowed.