A) Steps of calculation
Step 1: Determine Yearly Leave Entitlement
The system first determines the employee's annual leave entitlement based on the Leave Calculation Method configured in the Company Profile.
Step 2: Calculate Prorated Leave Entitlement Based on Resignation Date
Once the employee's resignation date is entered, the system calculates the prorated leave entitlement using the following formulas:
No. | Condition | Formula |
1. | Resign Year = Join Year | [Yearly Entitlement × (Resignation Date − Join Date + 1)] ÷ (Last Day of Year − Join Date + 1)
|
2. | Resign Year ≠ Join Year | [Yearly Entitlement × (Resignation Date − First Day of Year + 1)] ÷ Total Days in Year |
Step 3: Apply Entitlement Calculation Method
The system then determines whether the leave entitlement should be prorated monthly based on the entitlement calculation method.
No. | Entitlement Calculation Method | Formula |
1. | Yearly Leave
| Final calculation from Step 2
|
2. | Earn Leave: i. Resign Date = End date of the month | Step 2 Result × Worked Months ÷ Total Months
|
Earn Leave: ii. Resign Date ≠ End date of the month | Step 2 Result × (Worked Months − 1) ÷ Total Months
|
3. | Advance Earn Leave | Step 2 Result × Worked Months ÷ Total Months |
Step 4: Apply Leave Rounding Rules
The final leave entitlement is rounded according to the leave type and rounding method.
No. | Entitlement Calculation Method | Leave's Roundup Method | Round As Below |
1. | Yearly Leave | Hourly | Round to nearest 2 decimal places |
Half Day | Decimal < 0.1 round to 0 |
Decimal >= 0.1 & < 0.6 round to 0.5 |
Decimal >=0.6 round to 1 |
Full Day | Decimal > 0.51 round up else round down |
2. |
Earn Leave / Advance Earn Leave | Hourly | Round up to nearest 2 decimals |
Half Day | Decimal < 0.49 round to 0 |
Decimal >= 0.49 & < 0.99 round to 0.5 |
Decimal >=0.99 round to 1 |
Full Day | Decimal <= 0.99 round to 0 |
Decimal > 0.99 round to 1 |
Part B: Example Scenarios
Assumptions:
Annual leave entitlement: 12 days per year
Leave calculation method: Earn Leave
Leave application unit: Half Day
Scenario 1: Employee A resigned on 31/01/2023.
Step | Condition | Formula | Calculation |
1 | Resign Year ≠ Join Year | [(Yearly Entitlement × (Resignation Date − First Day of the Year +1)] ÷ Total Days in the Year
| [12 x (31 - 1 + 1)] ÷ 365 = 12 x [31 ÷ 365] = 1.019178 |
2 | Resign Date = End date of the month | (Step 1 Figure × Worked Months) ÷ Total Months | (1.019178 x 1 month) ÷ 1 month) = 1.019178 days |
3 | Rounding Method | For earn leave with half day | 1.019178 days ≈ 1.0 ∴ Employee A is entitled 1.0 day leave on Year 2023 |
Scenario 2: Employee B resigned on 01/02/2023.
Step | Condition | Formula | Calculation |
1 | Resign Year ≠ Join Year | [(Yearly Entitlement × (Resignation Date − First Day of the Year +1)] ÷ Total Days in the Year | [12 x (32 - 1 + 1)] ÷ 365 =1.052055 |
2 | Resign Year ≠ End date of the month | [Step 1 Figure × (Worked Months−1)] ÷ Total Months | [1.052055 × (2−1) months] ÷ 2 months = 0.526027 days |
3 | Rounding Method | For earn leave with half day | 0.526027 days ≈ 0.5 ∴ Employee B is entitled 0.5 day leave on Year 2023 |
Written by: Winnie (20230410)
Reviewed by: Azirah (20250814)
