What is LOP?
LOP means Loss of Pay, or leave without pay, where the employee is absent and no salary is paid for those days.
LOP stands for Loss of Pay, also called leave without pay. It is a leave type where the employee is absent from work and does not receive salary for those days. LOP is commonly used when an employee has exhausted all paid leave or takes an extended leave that is not covered by earned leave, sick leave or casual leave.
Because no wages are paid for LOP days, statutory contributions such as PF, ESI and professional tax are not calculated for those days. In PF, the LOP days are reported as NCP days in the ECR. This reduces the employee's pensionable service for that month. Some fixed statutory deductions, such as professional tax in certain states, may still be collected depending on the state rules and whether the remaining gross is above the exemption slab.
Employers usually calculate the daily rate from the monthly gross and multiply by the number of days worked. For example, in a 30-day month, 3 days of LOP means the employee is paid for 27 days.
Worked example
An employee has a monthly gross of ₹30,000 and takes 3 days of LOP.
| Item | Calculation | Amount | |---|---|---| | Daily gross | ₹30,000 / 30 | ₹1,000 | | LOP days | 3 | ₹3,000 | | Payable gross | 27 × ₹1,000 | ₹27,000 | | PF (12% on basic) | Basic ₹15,000 × 27/30 × 12% | ₹1,620 |
The professional tax and TDS are recomputed on the reduced gross of ₹27,000.
Related reading
Read the statutory deductions guide and the employee exit and settlement guide.
Frequently asked questions
- Does LOP affect PF?
- Yes. PF is not paid for LOP days because there are no wages. The days are usually reported as NCP days in the ECR.
- How is monthly salary calculated after LOP?
- The employer pays salary only for days present. For a fixed monthly salary, the per-day rate is used to reduce the amount for LOP days.
- Can an employer force an employee to take LOP?
- LOP must follow company leave policy and labour laws. Unauthorised absence may be treated as LOP, but it cannot be used to avoid minimum wages or statutory dues.