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Compliance setup — this guide covers statutory, payroll, and regulatory requirements. Octal HR can be configured to meet the needs of different countries, regions, and business environments.

How the attendance–payroll link works

Octal HR uses a closed-loop architecture: attendance records feed a shared attendance ledger that payroll reads at run time. There is no manual export from attendance or import into payroll.

  • Attendance records are built from biometric punches, manual entries, and Excel imports
  • When you run payroll for a month, Octal HR reads the attendance ledger for all working days in that month
  • The present, absent, and half-day counts drive loss-of-pay (LOP): absent days and half-days reduce pay for the month

Data pipeline: punch → payslip

Step 1 · Biometric device

Punch captured

Employee punches at a biometric device (ZKTeco, Anviz, Hikvision, eSSL). The device syncs to the Octal HR server.

Step 2 · Status derivation

Status derived from the shift

Octal HR evaluates each biometric punch against the employee's assigned shift and derives the status: Late if the check-in is after the shift start plus grace period; Absent if worked hours are below the shift's half-day hours; Half Day if below twice that; otherwise Present. Overnight shifts are handled across midnight. On Leave and Holiday come from leave and holiday records and are never overwritten by punches.

Step 3 · Manual entry & import

HR-set records kept as-is

Records entered manually or via Excel import keep the status HR selected — they are not re-derived from the shift. A permission-gated correction to any record updates the ledger that payroll reads.

Step 4 · Payroll Run

Attendance aggregated

When HR runs payroll (Payroll → Run Payroll → [Month]), Octal HR reads the attendance ledger and computes present days, absent days, and half-days for loss-of-pay. These feed directly into the payroll calculation.

Step 5 · Payslip

Deductions on payslip

Attendance-driven loss-of-pay appears as line items on each employee's payslip — absent deduction and half-day deduction — with the source count (e.g., "2 absent days").

What attendance data flows into payroll

Attendance elementPayroll effectPayslip line item
Present No deduction; paid as normal Not shown
Late No pay effect on its own Not shown
Absent days Deduction: per-day rate × absent days Absent Deduction (N days)
Half Day Deduction: per-day rate × 0.5 per half day Half Day Deduction (N days)
OT hours Addition: OT rate per hour × OT hours Overtime Pay (N hrs)
On Leave (approved paid leave) No deduction; leave balance reduced Not shown
Holiday No deduction; paid as normal Not shown

Attendance on the payslip

Absent days and half-days are converted to a loss-of-pay amount using the employee's per-day rate, then shown as deduction line items:

Example:
Per-day rate (from monthly basic): PKR 2,308
2 absent days → Absent deduction: 2,308 × 2 = PKR 4,615
1 half day → Half-day deduction: 2,308 × 0.5 = PKR 1,154

A payslip for an employee with attendance deductions looks like this:

Earnings
Basic SalaryPKR 60,000
House Rent Allowance (45%)PKR 27,000
Utilities (10%)PKR 6,000
Overtime Pay (6 hrs)PKR 2,885
Deductions
Absent Deduction (2 days)−PKR 4,615
Half Day Deduction (1 day)−PKR 1,154
EOBI Employee (1% on PKR 37,000)−PKR 370
Income Tax (WHT)−PKR 1,823
Summary
Gross EarningsPKR 95,885
Total Deductions−PKR 7,962
Net PayPKR 87,923

Attendance cut-off date

When you initiate a payroll run, Octal HR locks attendance data up to the cut-off date. This prevents attendance changes from affecting an in-progress payroll calculation.

1
Default cut-off: Last day of the payroll month. E.g., April payroll uses attendance from 1 April to 30 April.
2
Custom cut-off: Some companies run payroll mid-month (e.g., 25th to 24th). Configure under Payroll → Settings → Payroll Period.
3
Corrections after the run: If a record is corrected after payroll is finalized, the payroll for that month has already used the earlier value. Correct the attendance record and re-run or adjust the affected employee's payroll before finalizing.

Important: Correct any wrong or missing attendance records before running payroll. A day left as Absent will generate a deduction that is difficult to reverse once payroll is finalized and bank files are generated.

Month-end attendance checklist

Run through this before initiating payroll each month:

  • ☐ All wrong or missing attendance records corrected
  • ☐ OT hours reviewed
  • ☐ Public holidays for the month loaded in the holiday calendar
  • ☐ Any new employees added with the correct shift and effective-from date
  • ☐ Monthly Attendance Summary shared with department heads for review