Annual Leave Earning Policy

Happy New Year Kapchew.
I understand that you have answered similar question previously. However, i would like to seek your help. I just realised that the leave earning policy: “Prorated over a year, earned on daily basis” is not with 1 Jan to Dec 31, the same year

My Case:
Staff A, his AL entitlement : 12 days (96 hours) in his first year,
AL will be increased by 1 day (8 hours) from his anniversary date,
Commencement date: 1/12/2022
as we can only set the increment manually by ourselves, so I created a separate leave entitlement for increment (set entitled 8 hours) each year and its earning started from 1/12/2023. i believed the accrual will be stopped at 31/12/2023, unfortunately, i just noticed it will be calculated till 30/11/2024.

from 1/12/2023 to 31/12/2023, he shall earned 0.68 hours by using “Prorated over a year, earned on daily basis”.

i need to have the closing balance until 31/12/2023. could you please advice me how to handle this? will you consider to set the AL earned prorated by calendar year?

thank you very much for your help.

Happy new year.

  1. Leave Earning Policy currently is prorated over service year of employees, which is not necessarily from 1/1 to 31/12.

  2. To give you an example, an employee A who joins the company at 1/12 and is only entitled for final month leave balance, and assuming that the whole year entitlement is 12 days, then for this employee A he will only be assigned 1/12 x 12 = 1 day as the entitlement. And he will only fully earn his 1 day entitlement at the end of the year, i.e. 31/12.

yes, i understand.

if i need the closing stopped on 31 Dec, i shall set the entitlement again by using “Not Required” on 1 Jan next year.

i would like to raise similar issue that related to “Left” staff. i found that even i changed the staff employment terms - description to “resigned” and effective on mid of the year, his EARNED balance won’t stop until the end of the service year.

  1. You don’t have to set it to “Not Required”, if the leave entitlements are earned over remaining service period.

  2. Yes, I haven’t handled this part yet, probably will look into this when I have more free time later.

Hello Kapchew,

Recently, I notice the Leave Earning Policy has been updated.
“PRORATED - MONTHLY : Prorated over a year, earned on monthly basis” the accrual period now can be choose “Daily” or “Monthly” ; Earn at “Start of Accrual Period” or “End of Accrual Period”.

if I choose Accrual Period by Daily, Earn at Start of Accrual period. it seems the formula will be as same as the PRORATED - DAILY.

(eg. leave entitlement 12 days (96hrs) per year. , till 22 Jan 2024,

a) if PRORATED - DAILY, the calculation will be: 96/366*22=5.77hrs.

b) if PRORATED - MONTHLY, then accrual period by daily, the calculation will be: 96/12*22/31=5.68hrs

Much appreciated if you will consider to update the formula to b) for PRORATED - MONTHLY? i believe many companies would like to use this earning policy.

thank you.

  1. This feature was supported years ago, not recently.

  2. I don’t understand your question about the Start or End of Accrual Period may look the same at the beginning or end of a month compared to Prorated Daily, but I think I tested it when it was first rolled out, they were different.

Dear Kap,

my question is not for Start or End of Accrual Period.

as my understanding:

a) if PRORATED - DAILY, the calculation will be: 96/366*22=5.77hrs.

b) if PRORATED - MONTHLY, then accrual period by daily, the calculation will be: 96/12*22/31=5.68hrs

However, if i choose PRORATED - MONTHLY, the result is 5.77, as same as PRORATED - DAILY. seems a) & b) formula are the same.

Our company, i believe many other company also use the b) method.
Any chance we can use b) calculation method on HR.my?

thank you.