Rounding Method Used for Payroll Calculation

In payroll calculation, all items will be added up without rounding to ensure accuracy.

For instance, the amount of a 4.5 day Unpaid Leave with the rate of 119.35/day will be:

119.35 x 4.5 = 537.075 (no rounding off)

And this amount of 537.075 will be used directly in the calculation of total and net salary.

However, when it’s printed on a payslip, individual items will be rounded to 2 decimal places using “round-half-up” rounding method. For example:

537.075 is rounded to 537.08
2804.724 is rounded to 2804.72
100.126 is rounded to 100.13

These rounding-offs are solely needed to present a visually consistent view on the payslip, nonetheless, these rounded-off amounts when added together MAY NOT match the section sub-total or the final total.

For the avoidance of confusion, a special note is also added to the end of each payslip that reads:

“Note: The total has been calculated based on the unrounded amounts to ensure accuracy. Due to rounding, the sum of the displayed amounts may differ slightly from the total.”