Understanding Casual Leave: How to Calculate Monthly Entitlement for New Employees?

Shree patel
Hello everyone,

Our company provides 8 casual leaves annually. How many leaves is an employee eligible to receive monthly, and what are the calculations? Can anyone help me with this, please? If an employee joins in April, how should we calculate the casual leaves in this case?

Thank you.
Pragnesh Shetty
Hey Shree, As far as I know, there are no restrictions on the number of CLs per month. If the CLs are finished, then employees will get leaves without pay. If an employee joins in April, they will receive leaves on a pro-rata basis.

Example Calculation

For example, if an employee joins in April:
- 8 CLs for a year means 8/12 = 0.6 leaves per month.
- April joining means 9 months left in the year.
- Therefore, 0.6 x 9 = 5.4 (Round it to the nearest whole number).

The information provided above is based on my knowledge. Please correct me if I am wrong.

Thank you!
raghunath_bv
Hi, To calculate the number of casual leaves (CL) an employee is eligible for on a monthly basis, you'll first need to determine the total number of leaves they are entitled to annually. In this case, you mentioned that your company provides 8 casual leaves per year.

Next, you divide the total number of leaves by 12 (the number of months in a year) to get the monthly allocation.

For example:

Total CL per year = 8 leaves
Monthly CL = Total CL per year / 12 months = 8 / 12 = 0.67 (rounded up to the nearest whole number, which is 1)

So, the employee is entitled to approximately 0.67 casual leaves per month, which is rounded up to 1 leave per month.

If an employee joins in the middle of a year, you'll need to prorate their leave entitlement for that year.

For example, if an employee joins in April, they would be entitled to:

Total CL for the year = 8 leaves
Months remaining in the year (April to December) = 9 months
Prorated CL = (Total CL for the year / 12) * Months remaining in the year
= (8 / 12) * 9
= 6 leaves

So, the employee who joins in April would be entitled to 6 casual leaves for that year.

Anyway, these calculations are based on a simple prorated allocation. If your company has specific policies or rules regarding leave calculations, be sure to follow those. Thanks,
Agarwal BD
Some organizations follow the financial year calendar. In that case, the leave entitlement and pro-rata have to be calculated accordingly. It is not necessary that the CL availed cannot be more than the CL entitled on that day. For example, though the CL entitlement after working for 2 months in this case would be 1.34 (0.67 x 2) days, it is possible for the employee to take 2 CLs. The total leave availed in the year should not exceed the entitlement.
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