Calculating Pro-Rata Leaves: How Do You Handle Mid-Year Joiners' Entitlements?

Please suggest how we can calculate pro-rata leaves. Our annual leave calendar is January to December, with 12 CL/SL and 15 PL.

If a team member joins, for example, in July, how should we calculate their leave entitlement?

Hi,

You can credit 1 CL per month and 1.25 EL per month. Generally, EL is credited after the completion of a specified period of work, such as monthly, quarterly, or annually.

Hi,

CL/SL will be given on a pro-rata basis at the time of joining itself for the rest of the year (Jul to Dec), which is 6 months x 1 (12/12). On the other hand, PL will be credited at the end of the calendar year (usually). The individual will be credited with PL of 6 (Jul - Dec) x 1.25 (15/12) = 7.5 on 1 Jan of the succeeding year.

Thanks and Regards

Leave Calculation for New Employees

As per your company policy, it is 12 CL/SL [together] or 1 per month, and PL is 15, which amounts to 1.25 per month. If an employee joins in February, he/she will get 11 CL/SL or 5.5 each for the year at the time of joining. However, when it comes to PL, the same will be credited only after completion of that calendar year. It will not be calculated pro-rata at the time of joining but credited at the end of the year with 1.25 x 11 = 13.75 leaves for the year of joining.

Similarly, in the above example of joining in July, the CL/SL will be 6 as there are only 6 months left in the calendar year, and the PL will be credited at the end of the calendar year [31 Dec], which will be 1.25 x 6 months = 7.5 leaves. Pro-rata is not applicable for EL/PL.

I hope this is clear.

Thanks and Regards