We have received numerous requests and questions about how these leave type settings work in our system. This article seeks to explain how the functions of 'Leaves are entitled, Based on & Prorate' work in synergy in Payboy.

If you are new to leave type settings, you can read this article first:

Read also: Basic understanding of the different leave type settings

Case Scenario Example:

Employee’s Start Date: 1st Jun 2021

Base Entitlement: 14 days, +1 day with each year of service

Based on: Anniversary

With Prorate

From 1st Jun 2021 – 31st Dec 2021:

Since employee is in their 1st year of work, through the proration feature the system will calculate their entitlement from:

Proration Formula:

1st Jun 2021 - 31st Dec 2021 (7 months) = (7/12) * 14 = 8.17 days

As we have also selected the based on anniversary, the increments for each year of service would be calculated based on the start date of 1st June.

i.e.

1st Jun 2021 - 31st May 2022 = 14 days

1st Jun 2022 - 31st May 2023 = 15 days


The following would describe what would happen if you were to select the different options under "Leaves are entitled:"

If Leaves are entitled “at the start of the year”:

This option is implying that from the start of every year, employee will be entitled to the whole 14 days.

Only when its past his start date (1st June 2022) the increment of 1 day will be given: 14 + 1 = 15 days

i.e. Assuming the employee has not taken any leave since his first hire date + leaves are carried forward (1 year expiry) ;

His leave entitlement would be as such:

Date

Accumulated Entitlement

1st Jun 2021 - 30th Dec 2021:

(7/12) * 14 = 8.17 days

8.17 days

1st Jan 2022 - 30th May 2022:

(5/12) * 14 = 5.83 days

1st June 2022 - 30th Dec 2022:

(7/12) * 15 = 8.75 days

5.83 + 8.75 = 14.58 days

Based on Rounding settings:

~ off to nearest whole no. = 15 days

~ up to nearest whole no.= 15 days

~ down to nearest whole no. = 14 days

~ off to nearest half = 14.5 days

~ up to nearest half = 15 days

~ down to nearest half = 14.5 days

8.17^ + 15 days* = 23.17 days

*Assuming " ~ off to nearest whole no".

^Leaves carried forward w. 1 year expiry

(8.17 days will expire by the end of 2022)

1st Jan 2023 - 30th May 2023:

(5/12) * 15 = 6.25 days

1st June 2023 - 30th Dec 2023:

(7/12) * 16 = 9.33 days

6.25 + 9.33 = 15.58 days

Based on Rounding settings:

~ off to nearest whole no. = 16 days

~ up to nearest whole no.= 16 days

~ down to nearest whole no. = 15 days

~ off to nearest half = 15.5 days

~ up to nearest half = 16 days

~ down to nearest half = 15.5 days

15 days^ + 16 days* = 31 days

* Assuming "~ off to nearest whole no."

^Leaves carried forward w. 1 year expiry

(15 days will expire by the end of 2023)

If Leaves are entitled “in X month periods” (aka. Earned Leave Method):

For every month within 1st Jun 2021 – 31st Dec 2021 (1st year of service), this would be how the proration and “in X month period” work hand-in-hand:

  • Prorated entitlement for the 1st Jun 2021 – 31st Dec 2021 = (7/12) * 14 = 8.17 days

  • With “X month period” = X days ÷ X months = X for each month.

Date

Distributed Entitlement

1st Jun 2021

How leaves will be issued would be as that we calculate the entire entitlement of the year based off the proration calculation and THEN issue the leaves.

i.e

1st June 2021 - 30th December 2021:

(7/12) * 14 = 8.17 days

Earned in 1 month period:

8.17 / 7 = 1.17 days per month

Earned in 2 month period:

8.17 / (7/2) = 2.334 days per 2 months

Excess 1 month: 8.17 - (3 * 2.334) = 1.17 days given in December.

Earned in 3 month period:

8.17 / (7/3) = 3.50 days per 3 months

Excess 1 month: 8.17 - (2 * 3.5) = 1.17 days given in December.

Earned in 4 month period:

8.17 / (7/4) = 4.66 days per 4 months

Excess 3 month: 8.17 - 4.66 = 3.51 days given in October.

Earned in 6 month period:

8.17 / (7/6) = 7 days per 6 months

Excess 1 month: 8.17 - 7 = 1.17 days given in December.

1st Jan 2022

i.e 1st Jan 2022 - 30th May 2022:

(5/12) * 14 = 5.83 days

1st June 2022 - 30th Dec 2022:

(7/12) * 15 = 8.75 days

Total leave entitlement for 2022:

5.83 + 8.75 = 14.58 days

Earned in 1 month period:

14.58 / 12 = 1.215 days per month

Earned in 2 month period:

14.58 / (12/2) = 2.43 days per 2 months

Earned in 3 month period:

14.58 / (12/3) = 3.645 days per 3 months

Earned in 4 month period:

14.58 / (12/4) = 4.86 days per 4 months

Earned in 6 month period:

14.58 / (12/6) = 7.29 days per 6 months

1st January 2023

i.e 1st Jan 2023 - 30th May 2023:

(5/12) * 15 = 6.25 days

1st Jun 2023 - 30th Dec 2023

(7/12) * 16 = 9.33 days

Total leave entitlement for 2023:

6.25 + 9.33 = 15.58 days

Earned in 1 month period:

15.58 / 12 = 1.298 days per month

Earned in 2 month period:

15.58 / (12/2) = 2.60 days per 2 months

Earned in 3 month period:

15.58 / (12/3) = 3.90 days per 3 months

Earned in 4 month period:

15.58 / (12/4) = 5.19 days per 4 months

Earned in 6 month period:

15.58 / (12/6) = 7.79 days per 6 months


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. We will get back to you within 3 working days.

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