Calculation with 26 days is used only for the calculation of ORP (Ordinary Rate of Pay) like overtime, annual leave pay, sick leave pay, holiday pay and so on. (refer to EA section 60I) for unpaid leave is not under this section, shall divided with total days of the month (eg, January - 31 days, Feb -29 days, Mar- 30 days) Just for your info, normal company to calculate unpaid leave is follow calendar month, you may refer to below: using 26 days to calculate unpaid leave is higher than using calendar months calculation, eg. 1 day unpaid leave on Nov : RM 2,000 / 26 x 1 day = RM 76.92 RM 2,000 / 30 x 1 day = RM 66.67 If you calculate with calendar month, and the employee make noise, you can explain to them for the differences so, 26 days calculation for unpaid leave = *employee* might not happy calendar month calculation = *employer* might not happy. However, some company trying to avoid the employee to abuse unpaid leave, they will stated in their company policy that unpaid leave will affect the employee's increment and bonus. Therefore, i unable answer this to you, as unpaid leave is not stated in the act. perhaps you can consult with labour office on this matter. FYI, deduction must follow follow calendar days, lesser deduction according to EA Attend Employment Act training will help to have more understanding