Leave Management
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      Leave Proration Formula (Yearly Basis)

      Explore the three prorate modes for leave calculation on a yearly basis: Started Month, Completed Month, and Partial Month.

      The proration of leave entitlement depends on the policy settings under Leave Policy and the chosen Prorate Mode. The three options are Started Month, Completed Month, and Partial Month.

      To check the settings:

      1. Go to HR Lounge > Leave > Leave Policy > Click on the leave type.
      2. Under Entitlement, toggle on Prorated Leave to find Yearly Basis or Monthly Basis.
      3. Under Yearly Basis, you will see 3 Prorate Modes: Started Month, Completed Month, and Partial Month.

      When an employee joins or leaves mid-month, the chosen prorate mode will dictate how leave entitlement is calculated.

      Prorate Mode: Started Month

      • Logic: If the employee joins or leaves mid-month, that month is considered fully worked for the purpose of leave entitlement.

      • Formula:

        Prorated Entitlement= (Total Yearly Entitlement/12) x (Number of full months served + (Days served in the partial month/Total days in the month)).

      • Example:

      Prorate Mode: Completed Month

      • Logic: Only fully completed months are considered for entitlement. If the employee joins mid-month, that month is excluded from the proration.

      • Formula:

        Prorated Entitlement= (Total Yearly Entitlement/12) × Number of fully completed months served.

      • Example:

      Prorate Mode: Partial Month

      • Logic: The leave entitlement for a partial month is based on the exact number of days worked in that month, with the entire year taken into account.

      • Formula:

        Prorated Entitlement=(Total Yearly Entitlement/12) × (Number of fully completed months served + (Days served in the partial month/ Total days in the month)).

      • Example:

      Summary

      Each prorate mode has different ways to calculate an employee's leave entitlement depending on the month they joined or left the company:

      • Started Month: Treats partial months as full months for entitlement purposes.
      • Completed Month: Only fully completed months are considered.
      • Partial Month: Prorates the entitlement based on the exact number of days worked within a partial month.