Hello, and a Happy New Year to all!
If you have any questions regarding the carry-forward leaves from the previous year or the opening leave balance, you can find the answers in this article.
You can take a look at this article on where to check your leave balance.
This table illustrates the system's calculation of carry-forward leaves for leave adjustments (addition or deduction). Edited in the year 2025.
Type of Leave Adjustment | Expiry Date | Action for Calculation |
Leave Addition | 31 Dec 2025 or before | Will NOT be carried forward |
Leave Addition | 1 Jan 2026 & beyond | Will be added as a new leave addition |
Leave Deduction | 30 Dec 2025 or before | Will NOT be carried forward |
Leave Deduction | 31 Dec 2025 & beyond | Will be carried forward |
Let's use Jane as an example:
She is an employee with 12 days of annual leave entitlement every year and has yet to take any leave for the year 2025. Now, we will show you 10 possible scenarios for the carry-forward leave calculation.
Scenario | Description | Expiry Date |
1 | Entitlement with Leave Adjustment (Additions) | Expiry Date on 31 Dec 2025 or before |
2 | Entitlement with Leave Adjustment (Additions) | Expiry Date on 1 Jan 2026 and beyond |
3 | Entitlement with Leave Adjustment (Deduction) | Expiry Date Set on 30 Dec 2025 or before |
4 | Entitlement with Leave Adjustment (Deduction) | Expiry Date Set on 31 Dec 2025 and beyond |
5 | Entitlement with Leave Adjustment (Addition & Deduction) | Expiry Date Set for Leave Addition & Deduction |
Scenario 1:
Entitlement with Leave Adjustment (Additions) with Expiry Date on 31 Dec 2025 or before
Type of Leave | Number of Days | Expiry Date |
Annual Leave Entitlement | 12 | - |
Leave Addition | 6 | 31 Dec 2025 |
If Jane has a base entitlement of 12 days of annual leave and was given an additional 6 days (leave addition) with the expiry date set as 31 Dec 2025 or before, the system will calculate the carry-forward leave in this manner;
End of 2025: 12 Days
Start of 2026: 12 Days + 12 Days = 24 Days in Total
*6 Days of Leave Addition will not be carried forward
Scenario 2:
Entitlement with Leave Adjustment (Additions) with Expiry Date on 1 Jan 2026 and beyond
Type of Leave | Number of Days | Expiry Date |
Annual Leave Entitlement | 12 | - |
Leave Addition | 6 | 1 June 2026 |
If Jane has a base entitlement of 12 days of annual leave and was given an additional 6 days (leave addition) with the expiry date set on 1 Jun 2026 and beyond, the system will calculate the carry-forward leave in this manner;
End of 2025: 12 Days + 6 Days = 18 Days
Start of 2026: 12 Days + 6 Days + 12 Days = 30 Days in Total
*6 Days will be added in 2026 as a new leave addition
Scenario 3:
Entitlement with Leave Adjustment (Deduction) with Expiry Date Set on 30 Dec 2025 or before
Type of Leave | Number of Days | Expiry Date |
Annual Leave Entitlement | 12 | - |
Leave Deduction | 5 | 30 Dec 2025 |
If Jane has a base entitlement of 12 days of annual leave and was given a deduction of 5 days (leave deduction) with the expiry date set on 30 Dec or before, the system will calculate the carry-forward leave in this manner;
End of 2025: 12 Days
Start of 2026: 12 Days + 12 Days = 24 Days in Total
Scenario 4:
Entitlement with Leave Adjustment (Deduction) with Expiry Date Set on 31 Dec 2025 and beyond
Type of Leave | Number of Days | Expiry Date |
Annual Leave Entitlement | 12 | - |
Leave Deduction | 5 | 31 Dec 2025 |
If Jane has a base entitlement of 12 days of annual leave and was given a deduction of 5 days (leave deduction) with the expiry date set on 31 Dec 2025 or beyond, the system will calculate the carry-forward leave in this manner;
End of 2025: 12 Days - 5 Days = 7 Days
Start of 2026: 12 Days + 7 Days = 19 Days in Total
Question: What if my employee has both leave additions and deductions?
Answer: It still follows the calculation as mentioned above.
Scenario 5:
Entitlement with Leave Adjustment (Addition & Deduction) with Expiry Date Set for Leave Addition & Deduction
Type of Leave | Number of Days | Expiry Date |
Annual Leave Entitlement | 12 | - |
Leave Addition | 6 | 31 Dec 2025 |
Leave Deduction | 5 | 31 Dec 2025 |
If Jane has a base entitlement of 12 days of annual leave and was given an addition of 6 days (leave addition) and a deduction of 5 days (leave deduction) with an expiry date set on 31 Dec 2025 for both, the system will calculate the carry-forward leave in this manner;
End of 2025: 12 Days - 5 Days = 7 Days
Start of 2026: 12 Days + 7 Days = 19 Days in Total
Suppose the opening leave balance of your employees is not calculated according to your own company's policy. In that case, you may make a leave addition or deduction adjustment in the system from 1 January onwards.
P.S. You can indicate a negative amount for leave deduction.
Applying Next Year's Leave in the Current Year:
Employees can apply for leave dated in the following year, even before the new year begins. Here’s how the system processes it:
Example Scenario
Jane has 4 unused leave days in 2025 that will be carried forward into 2026.
In December 2025, she applies for 4 days of leave in January 2026.
How the System Handles It
Jane applies for leave in 2025 for leave dates in 2026.
The system will initially deduct these days from her 2026 leave balance, because the leave falls in 2026.
When 2026 begins, the 4 carried-forward days are added, which then offset the earlier deduction.
As a result, her 2026 balance reflects the correct remaining entitlement after accounting for both the carried-forward days and the leave taken.
This ensures employees can plan ahead while the system keeps the leave balances accurate across year transitions.
Note:
Make sure to update the carry-forward settings before the year ends.
If the carry-forward setting is applied just now in the current year, any remaining balance from previous years will not be automatically carried over. Instead, the carry forward will take effect starting from the next year.
You can refer to this article for guidance on updating your leave type settings.
Click on the button below to find out more!
Hope these examples help you in understanding the system's calculations!
Feel free to contact us if you face any difficulties through the support chat icon on the bottom right of the screen or email support@payboy.biz.