Understanding Annual Leave Calculations

Every employee who has worked for at least 3 months is entitled to pro rated annual leave. The entitlement is based on working days (and not calendar days). We provide two absence entitlements for the calculation of annual leave entitlement. The first entitlement—ANN GENL ENT—calculates leave on a pay period basis. Leave entitlement is based on the years of service within the company. Pro rata leave entitlement is calculated at every pay period and added to the balance. This process also verifies that the total leave does not exceed beyond a particular holding.

The other annual leave entitlement—ANN STAT ENT—is calculated at every anniversary for the employee. The total entitlement is based on the years of service and the number of accrual days is based on the values that are set in a bracket. This leave entitlement does not check for maximum balance carryover into the next anniversary year (for the employee).

Note:

There is no fixed legislation to carryover entitlements. Generally, leave balance from one year cannot be carried over for more than two years. In some cases, restriction also applies on the number of days that can be accrued at each quarter. For example, if the number of days in the first year of service was 10, then a maximum of 3 must be used within the first quarter—otherwise, the 3 days are forfeited.