# How Would You Redesign Payroll & Leave Policies in a 4-Day Workweek?!

**URL:** <https://community.greythr.com/t/how-would-you-redesign-payroll-leave-policies-in-a-4-day-workweek/20432>\
**Category:** General Discussions\
**Tags:** tips\
**Created:** [August 26, 2025, 7:43am UTC](https://community.greythr.com/t/how-would-you-redesign-payroll-leave-policies-in-a-4-day-workweek/20432 "2025-08-26T07:43:11Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Kaulin](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/kaulin/32/2425_2.png) [@Kaulin](https://community.greythr.com/u/Kaulin)\
**Post date:** [August 26, 2025, 7:43am UTC](https://community.greythr.com/t/how-would-you-redesign-payroll-leave-policies-in-a-4-day-workweek/20432/1 "2025-08-26T07:43:11Z")

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The 4-day workweek is no longer just a buzzword. From the UK to Japan, pilot projects have shown that **working fewer days can actually increase productivity, improve employee well-being, and reduce turnover.**

But for HR leaders, the excitement quickly meets reality:  
👉 _ **How do we redesign payroll, leave, and compliance policies when employees only work 4 days instead of 5?** _

Let’s break it down.

## 🌍 Global Momentum Behind the 4-Day Workweek

- **UK Pilot (2022–23)**: 61 companies tried a 4-day week, and **92% continued permanently** due to productivity gains and happier employees ([BBC](https://www.bbc.com/news/business-64742617)).

- **Iceland (2015–2019)**: 2,500 workers reduced hours to 35–36 per week, with _no drop in productivity_ and _dramatic improvements in work-life balance_ (Autonomy Report).

- **Microsoft Japan (2019)**: A 4-day week trial boosted productivity by **40%**.

In the Middle East, the UAE made headlines by shifting to a **4.5-day workweek** in 2022 (Friday half-day, Sat–Sun off). The question now is: _Is the 4-day week next?_

## 💸 Payroll Redesign: Key Considerations

1. **Same Salary vs Pro-Rated Pay**

2. **Overtime Calculations**

3. **Hourly vs Monthly Staff**

4. **WPS & Compliance in the Middle East**

## 🌴 Leave Policies: What Changes in 4-Day Workweek?

1. **Annual Leave Calculation**

2. **Sick Leave Impact**

3. **Public Holidays**

4. **Leave Encashment & Gratuity**

## ⚖ Balancing Productivity vs Policy

Global evidence suggests **output stays stable or rises** in a 4-day week. But policy misalignment could cause disputes:

- Employees may expect **extra weeks of leave**.

- Employers may want to compress hours instead of cutting them.

- Payroll errors could snowball if not redesigned carefully.

## 💡 How HR Can Prepare

1. Run a **Payroll Simulation** : Test salary, overtime, and EOSB under 4-day scenarios.

2. Redefine **working hours** in contracts: 32 hours vs compressed 40 hours.

3. Benchmark **leave entitlements** with market best practices.

4. Communicate early and clearly with employees.

Community Manager.

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**Author:** ![abhiwantech](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/abhiwantech/32/4813_2.png) [@abhiwantech](https://community.greythr.com/u/abhiwantech)\
**Post date:** [August 27, 2025, 12:47pm UTC](https://community.greythr.com/t/how-would-you-redesign-payroll-leave-policies-in-a-4-day-workweek/20432/2 "2025-08-27T12:47:25Z")

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For a game development company adopting a 4-day workweek, payroll should remain the same if employees still meet standard weekly hours, ensuring no salary reduction. Leave policies can be redesigned so one day of leave equals one full workday, with vacation, sick, and personal leave scaled fairly to match the shorter week. This keeps benefits consistent while supporting better work-life balance and productivity in the creative game development process.

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**Author:** ![ankittechabhiwan](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/ankittechabhiwan/32/5424_2.png) [@ankittechabhiwan](https://community.greythr.com/u/ankittechabhiwan)\
**Post date:** [August 28, 2025, 7:33am UTC](https://community.greythr.com/t/how-would-you-redesign-payroll-leave-policies-in-a-4-day-workweek/20432/3 "2025-08-28T07:33:13Z")

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Most of the metahuman creator companies have integrated AI regarding this.