315-Leave Accrual.htm

The following methods can be used for Leave Accrual:

Standard
Proportional

Standard Accrual

Use the Standard accrual method for employees who work regular hours or days each pay period. LinkSOFT calculates their accrual rate in relation to the employee's Pay Teams.

Accrual = Privilege /Pay Frequency

For example:

An employees annual leave entitlement is 3 weeks, (15 days / 120 Hours ). Employee is paid every fortnight. Calculated Accural would be:

Accrual = 120/26 = 4.61 hours of leave in every pay.

Leave Accrual when employee's start date falls within the pay period (First Pay Scenario).

When an employee's start date falls within the pay period, the leave accrual formula is calculated on a daily basis instead of the standard (allocation/frequency)

Accrual = (allocation / 365) * days worked in the pay

Days worked = difference between the start date and pay date inclusive of dates

For example

Leave allocation is 80

Employee works Monday to Saturday.

Employee Started on the 01/01/2017 Pay date is 31/01/2017.(26 Days worked in the first pay)

Accrual = (80/365)*26 = 5.6986

Proportional Accrual

This method is useful for calculating the total accrual when an employee works different hours or days per week. Using this method, employees accrue annual leave units in proportion to the number of units they actually work.

Formula: Accrual = [ Entitlement/ [Pay Frequency * Hours per pay]] * hours worked

Scenario:

An employees annual leave entitlement is 3 weeks (120 hours) and hours per week is 40 hours.

If this employee works 4 days a week (32 hours) then

Proportional Accrual calculates:
[120/[52*40]] * 32 = 1.846 hours (weekly entitlement)