Accrued Leave Formula:
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Accrued leave calculation determines the pro-rata vacation or paid time off (PTO) an employee has earned based on their annual entitlement and the number of months worked during the accrual period.
The calculator uses the accrued leave formula:
Where:
Explanation: This pro-rata calculation ensures employees receive a fair portion of their annual leave entitlement based on actual time worked.
Details: Accurate leave accrual tracking is essential for payroll processing, compliance with employment laws, employee satisfaction, and proper workforce management.
Tips: Enter annual entitlement in days and months worked as a decimal (e.g., 6.5 for six and a half months). Both values must be positive numbers.
Q1: What if my company uses hours instead of days?
A: Convert hours to days by dividing by your standard daily work hours (e.g., 8 hours/day).
Q2: How do I calculate for partial months?
A: Use decimal values for months worked (e.g., 3.25 months for 3 months and 1 week).
Q3: Does this work for different accrual periods?
A: Yes, adjust the months worked accordingly for quarterly, semi-annual, or custom periods.
Q4: What about public holidays and sick leave?
A: This calculator is for vacation/PTO accrual only. Other leave types may have different accrual rules.
Q5: Can this be used for new hires or terminations?
A: Yes, it's ideal for calculating pro-rata leave for employees who start or leave mid-year.