Loss of Pay, or LOP, also written as LWP for Leave Without Pay, is a deduction from salary for days you were absent without an available paid-leave balance. If you take four days off but have only one day of leave left, three days become LOP and your salary for the month is reduced accordingly.

How the deduction is calculated

The per-day rate is your monthly gross divided by a divisor, then multiplied by the LOP days. The divisor varies by employer: calendar days in the month (28 to 31), a fixed 30, or fixed working days such as 26. The choice matters. On a Rs 60,000 gross, three LOP days at a 30-day divisor is a Rs 6,000 cut; at a 26-day divisor it is about Rs 6,920.

LOP also scales down components proportionally, so PF for the month is computed on the reduced basic, and a heavy LOP month can drop your gross below the ESI or professional tax threshold for that month.

How to avoid surprises

Check your leave balance before applying, know your employer’s divisor, and remember that unpaid days in the attendance cut-off window hit the very next payslip. Where leave was applied but not approved in the system before payroll ran, it can post as LOP and need a correction the following month.

Frequently asked questions

Does LOP affect my PF and gratuity?

PF for that month is lower because it is on reduced wages. Gratuity uses last drawn wages, so occasional LOP does not reduce it, but a long unpaid break can break “continuous service”.

Is a sandwich holiday counted as LOP?

Under a sandwich-leave policy, a holiday or weekly off falling between two LOP days can itself be treated as LOP. Policies differ, so check yours.

Can LOP be reversed?

Yes, if it was applied in error or leave is regularised later. The correction appears as an add-back in a subsequent payslip.

See the effect of unpaid days with the Leave Balance Calculator and the Take-Home Salary Calculator. Our guide to loss of pay goes into policy detail.