Paid Leave for Attendance on Holidays (ERPNext Payroll Issue)

ERPNext
1

Hello,

I am facing an issue with ERPNext payroll calculations where attendance on holiday days is not being considered as paid leave.

I have correctly added weekends and other official holidays to my holiday list, and attendance for these days is marked as “Present”. However, in the payroll calculation, these holiday days are not counted as working days, and employees are not receiving payment for these days.

Settings I am Using:

  • Payroll Based On: Attendance
  • Consider Unmarked Attendance As: Absent
  • Consider Marked Attendance on Holidays: Enabled

My Questions:

  1. What settings do I need to adjust to ensure attendance on holiday days is considered paid leave?
  2. Besides enabling the “Consider Marked Attendance on Holidays” option, is there anything else I need to configure?
  3. Do I need to create a custom Salary Rule for this? If so, could you share an example configuration?