LOP | Meaning and Definition

What is Loss of pay (LOP)?

LOP stands for “Loss of Pay.” It is defined as the deduction in salary due to leave taken by an employee when he/ she does not have adequate leave balance in the account. The loss of pay is calculated based on the per-day salary of an employee. If an employer plans to grant leave and compensate for that specific workday on the weekend on a strike day, and an employee does not show up both days, the employee will be given a loss of pay. Also, if a person works on a weekend to finish his or her task owing to inefficiency or lack of supervision, that day is considered LOP. 

Factors Counting for LOP In Salary 

  • Employment Contract Length – Depending on the corporate policy, certain employees on an annual contract will have their yearly pay taken into account when LOP calculations are conducted.
  • Nature Of Working – Employees who operate in industries that are considered vital and dangerous to other employees may not be eligible for LOP.
  • Scale Of Pay – Employees that high-level positions may not always be provided with the scope of availing LOP.
  • Discretion Of the Company – When a valued employee has been sick for more than six months, has a bad attendance record, or has not been able to satisfy the company’s job needs, LOP will be granted.
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