Hybrid of Payment and Deduction Methods 
Hybrid of Payment and Deduction Methods
Definition
The method used to calculate partial period factors.
Use
Since the deduction method is used for a lot of absences and the payment method is used for few absences it is recommended that each individual should decide which method should be used. For few absences the payment method should be used because then the remuneration is high. For a lot of absences the deduction method should be used because then the employee would earn less accordingly.
Mary Brown receives a basic monthly pay of 5,456.00 and has a general period working time of 22 workdays. In a month that contains 23 workdays, she has an unpaid absence of 10 workdays.
Reduction using different methods
Days of absence |
Factoring method |
Partial period factor |
Standard salary |
10 |
Deduction |
(22-10)/22 = 12/22 |
2 976,00 |
10 |
Payment |
(23-10)/22 = 13/22 |
3 224,00 |
11 |
Deduction |
(22-11)/22 = 11/22 |
2 728,00 |
11 |
Payment |
(23-11)/22 = 12/22 |
2 976,00 |
The calculation shows: If Mary Brown were to be absent and unpaid for 11 days she would earn just as much if the calculation was made using the payment method as she would if the absence were calculated for 10 days using the deduction method.