The payroll pay date is after the payroll period. Usually, allowances are paid on the basis of the employee's actual working hours. If the employee has unpaid leave, the time allowance payroll run is based on the employee’s actual working hours. It means that hourly wage earners do not receive deferred payments.

Typically, the payroll period is the same as the calendar month and the payroll calculation is run on a day within the payroll period. The payroll amount is calculated as if the employee had worked without any unpaid absence after the payroll run date until the end date of the payroll period. If an employee takes unpaid absence after the payroll pay date, this unpaid absence is adjusted in the next payroll run – that is, it triggers a retroactive calculation. Salaried employees do not receive time allowance payments.

Similarly to salaried employees, the payroll period for a monthly wage earner is the calendar month. The basic pay is paid as if the employee had worked without any unpaid absence after the payroll run date until the end date of the payroll period. Time allowances are paid to monthly wage earners based on their actual working hours. However, it is impossible to calculate the accurate working hours for monthly wage earners in the payroll run since the payroll run date is before the end date of the payroll period. As a result, the time allowances are compensated in a separate time evaluation period which is not in line with the payroll period.