What is Earned Leave?

Earned Leave is a leave type that employees accumulate over time based on predefined conditions, such as months of service or days worked. It is particularly useful for organizations to balance employee welfare with operational needs.

Earned Leave refers to leave that employees accumulate over time, based on their work schedule or tenure. It is a type of paid leave granted to employees, allowing them to take time off while still receiving pay.

In BrioHR, earned leave is available to accrued on a daily or monthly basis. These leave types allow employees to build up their leave entitlement progressively.

How Does Earned Leave Work?

Earned Leave accrual is typically calculated using accrual types that define how and when the leave is credited to an employee. These settings ensure that employees accrue leave fairly and consistently. Below are the common types of accrual methods:

Types of Earned Leave Accrual

1. Daily Accrual

   • Employees earn a fixed amount of leave each day worked.
   • Example: If employees are entitled to 14 days of annual leave and earn leave on a daily basis, they would earn approximately 0.057 days of leave for each day worked (14 days ÷ 240 workdays in a year). After working 10 days, they would have accumulated approximately 0.57 days of earned leave.

2. Monthly Accrual

   • Employees accrue a set number of leave days at the end of each month.
   • Example: Employees earn 1.5 days of earned leave each month, resulting in 18 days of earned leave after 12 months.