How to calculate Leave Entitlement

Created by QNE Software Sdn bhd, Modified on Mon, 30 Nov, 2020 at 11:54 AM by QNE Software Sdn bhd

On Company > Company Profile > Setting > Leave Setting there have 3 Leave Calculation Method to choose.

Here is the formula for 3 Leave Calculation Method.

1. For Days Methodthe system will calculate the leave entitlement based on days

Calculation Formula:

n                                  = No. of days start from year until Join/Confirm Month and Day

L1                                = Leave Entitle Days before Join/Confirm Day.

L2                                = Leave Entitle Days on and after Join/Confirm Day.

yearTotalDays             = 365 or 366(if it’s leap year)

Leave Entitlement     = (((n – 1) ÷ yearTotalDays) × L1) + (((yearTotalDays – n +1) ÷ yearTotalDays) × L2)

 

2. For Month/Inclusive, to calculate leave of entitlement based on which cut of date of the month. (e.g.: if the cutoff date is set as 15 at Include the month in service length calculation if day of service is before or on, employees who join before 15 of the month, the system will include 1 day of leave entitlement and for those who join after 15 of the month, the system will exclude the 1 day of leave entitlement for that month.)

Calculation Formula:

CutoffDay                   = Leave Cutoff Day

Mons                           = No. of months start from year until Join/Confirm Month.

Or

Mons                           = Mons – 1 (If Join/Confirm Date <= CutoffDay)

L1                                = Leave Entitle Days before Join/Confirm Day.

L2                                = Leave Entitle Days on and after Join/Confirm Day.

Leave Entitlement     = ((Mons ÷ 12) × L1) + (((12 – Mons) ÷ 12) × L2)

Leave Cutoff Day: Specify the cutoff date for the system to calculate the leave entitlement. This setting is only applicable if Month/Inclusive method is used.

For example: 15 is set on Leave Cutoff Day, therefore if date of service is before or on the 15th of the month, the system will include the month in service length calculation and if the date of service is after the 15th of the month, the system will exclude the month in the service length entitlement.

 


3. For Month/Proportion, the system will calculate based on proportion

Calculation Formula:

Mons               = No. of months before Join/Confirm Month

JoinDays                      = No. of days of Join/Confirm Day – 1

JoinMonthDays           = No of days of Join/Confirm Month

Mon1                           = Mons + (JoinDay ÷ JoinMonthDays)

Mon2                           = 12 – Mon1

L1                                = Leave Entitle Days before Join/Confirm Day.

L2                                = Leave Entitle Days on and after Join/Confirm Day.

Leave Entitlement     = ((Mon1 ÷ 12) × L1) + ((Mon2 ÷ 12) × L2)



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