Leave Calculation Method : HRMS

Leave Calculation Method

Created by Auto Count Support, Modified on Wed, 26 Mar at 4:45 PM by Auto Count Support

This guide will explain the leave calculation method.

1) Overview of leave setting
For individual employee, as their join date and length of service may differ, we need to determine (especially for Annual Leave):
a) how to calculate his leave entitlement in each calendar year
b) how to calculate his leave entitlement in each calendar month.
And in general, we also need to set:
c) the company’s policy of Leave Entitlement (for Annual Leave, Sick Leave…)

2) Features/Settings related to leave calculation

a) Tools > Company Profile > Basic Information > Leave Information

This setting will determine total leave entitlement for an employee in each calendar year.

Example: According to ABC Company policy of Annual Leave entitlement,
1st year of service will entitle for: 12 days

2nd year of service will entitle for: 14 days

3rd year of service will entitle for: 16 days (and subsequent years)

Mr. Peter join the company on 1 April 2019

His annual leave entitlement according to calendar year need to be determined:

Year 2019: ? Days
Year 2020: ? Days
Year 2021: ? Days
Year 2022: ? Days

Feature

Purpose

Options

Effects

Leave Cutoff Day

To determine if the month of join date to be included.

Applicable only when Leave Calculation Method is Month Inclusive.

0 – 31

When 15 is assigned:

• when join date is on or before 15th then that month will be included as one full month;

• when join date is after 15th then that month will be excluded.

Leave’s Roundup

Minimum unit of measurement for leave entitlement in each calendar year.

• Hourly
• Half Day
• Full Day

The final figure (in 5 decimal points) will be rounded up as follow: Hourly: 8.41235 days will be expressed as 8 Days and 3 Hours (assuming 8 working hours per day: 0.41235 x 8 = 3.2988 hour) Half Day: 8.10000 ~ 8.59999 will round up to 8.5 Days. 8.60000 ~ 9.09999 will round up to 9.0 Days. Full Day: 8.50001 ~ 9.50000 will round up to 9.0 Days

Feature

Purpose

Options

Effects

Leave Calculation Method

To calculate total leave entitlement in each calendar year

• Days • Month Inclusive • Month Proportion

General Formula: is tied to length of service. So usually leave entitlement in each calendar year is the total of 2 parts. Part 1 is leave entitlement before join date (LEb) and part 2 is leave entitlement after join date (LEa).

For example: Peter join on 1 Apr 2019, his first year of service will be crossing 2019 and 2020 (1/4/2019 ~ 31/3/2020)
For 2019: LEb = 0 LEa = 1st part of his 1st year entitlement.

For 2020: LEb = 2nd part of his 1st year entitlement LEa = 1st part of his 2nd year entitlement

So, formula for leave entitlement of a calendar year (LE): LE = LEb + LEa

Days: To calculate LEb and LEa based on number of days respectively.
Example: Join date is 1/4/2019 For 2019: LEb = 0 LEa = 275/365 x 1st year entitlement. For 2020: LEb = 91/366 x 1st year entitlement. LEa = 275/366 x 2nd year entitlement

Month Inclusive: To calculate LEb and LEa based on number of months (full month, no decimal point) respectively.
Example: Join date is 10/4/2019 For 2019: LEb = 0 LEa = 9/12 x 1st year entitlement. For 2020: LEb = 3/12 x 1st year entitlement. LEa = 9/12 x 2nd year entitlement

Month Proportion: To calculate LEb and LEa based on number of months (with 2 decimal points) respectively. Example: Join date is 10/4/2019 1~9 Apr = 9 days = 9/30 = 0.3 month 10~30 Apr = 21 days = 21/30 = 0.7 month
For 2019: LEb = 0 LEa = 9.70/12 x 1st year entitlement. For 2020: LEb = 3.30/12 x 1st year entitlement. LEa = 9.70/12 x 2nd year entitlement

Calculate Year of Service By

To determine length of service according to employee’s join/confirm date. Applicable only for those Leave Type whose Entitlement Calculation Method is ‘…by Employee’s Join/Confirm Date’. Not applicable for those Leave Type whose Entitlement Calculation Method is ‘…by Calendar Year’.

• Join Date • Confirm Date

a) Be cautious when choose to base on Confirm Date as any period before confirmation date will be counted.

b) In the following illustrations, all examples will base on Join Date. However its calculation method is also applicable to ‘base on Confirm Date’ as the difference is only on the date.

c) For those Leave Type whose Entitlement Calculation Method is ‘…by Calendar Year’, the Join Date is assumed to be on 1st January (means enjoying full year entitlement)

Illustrated Example (calculation of leave entitlement for calendar years 2019 and 2020)

Join Date: 15 March 2019

Company annual leave entitlement policy: 1st year of service = 12 days.

2nd year of service = 14 days.

Working hour per day = 8 hours

b) Tools > General Maintenance > Leave Type
To create different types of leave (Annual Leave, Sick Leave, Maternity Leave…) and determine how to calculate leave entitlement for each calendar month. Note: the following example use Leave Calculation Method = Days, and Rounding to Half Day (refer to Illustrated Example in part 2a.)