Threshold value for a component to be effected by LOP

In Keka, we can label components as "Not Affected by LOP," meaning their values remain unchanged despite any loss of pay (LOP). However,  few organizations might prefer that specific components  remain unaffected by LOP as long as  the LOP days are below a certain limit. 

Many organizations extend this kind of benefit, ensuring that certain allowances like HRA, Internet, Professional, etc., remain unaffected by LOP days. Importantly, this benefit usually has a threshold, with organizations implementing it only if the LOP is below a specified limit. Let us understand how to enable this feature.

To activate this feature, click on Payroll (1) from the left navigation menu, then navigate to Settings (2). Select a specific pay group, and click on Configure (3).

In the pay group configuration screen, you will find all the components associated with the pay group, choose a component and select Edit (4) where you wish to enable a Threshold Limit.

In the component edit screen, scroll down to find the option This component value is not impacted by Loss of Pay (LOP), due to employee�s attendance or Unpaid leave. Enable this option if you do not want the LOP to affect this component. 

You can also adjust the difference amount created due to LOP in special allowance by enabling the option of Adjust the difference amount (Paid value - Actual value due to LOP) against Special Allowance.

To set a threshold value, click on Set Threshold.

Set a threshold value by providing the number of days after which the LOP will be impacted on this component.

 Here, we have taken 4 days, i.e the LOP will only impact this component if the LOP days are more than 4.

Similarly, if you wish to delete the threshold value click on Delete Threshold. After making the necessary changes, click on Update to save your settings.

Hope this article was helpful, have more queries? Contact our Product Experts right away!