Earned Leave Calculation Confusion: When Should New Employees Start Accruing EL?

Hi Friends,

How can we calculate the EL for the year? I have basic knowledge but still some confusion. If a person joins in mid, like June 07, and now we have to maintain a new leave register, can we give EL to him from Jan 08? Or should we show his name in the EL register after completing 1 year from his joining?

Nivedita Kaushik
Noida

Dear Nivedita,

Leave is calculated on a pro-rata basis, which means it is calculated based on the number of days of service. The example you have provided... First, confirm with your HR Leave policy how long an employee must work to become eligible to take earned leaves. Most companies have a rule where 7 days are allowed during the probation period, and the rest are granted after confirmation on a pro-rata basis.

After confirmation, we calculate earned leave, even for the probation period. For instance, if an employee joins on 7th July and the total earned leave for the year is 16 days, then after 6 months of service or confirmation, automatically 8 days of earned leave will be credited to their balance.

I hope this explanation helps you understand the process better.

Regards,
Amit Seth

Nivedita, you are very correct. This is the minimum limit of earned leaves given against a work period of 240 working days. The rule states that these leaves can be availed but cannot be encashed during the calendar year. According to the rule, for every 20 days of work, one must earn an earned leave. It can only be encashed in the same calendar year if the individual separates from the organization. If the leave is not availed, the rule allows for up to 30 days of leave to be carried forward to the next calendar year. I hope this explanation has addressed your query.

Regards,
Amit Seth

Hi Nivedita,

Earned leave is calculated as 2.5 days per month for an incomplete half-year. There are 31 days in a year. 16 days of earned leave are accrued between January 1st and June 30th, for the first half of the year, and 15 days from July 1st to December 31st, for the second half of the year. For incomplete months in a half-year, it is calculated as 2.5 days per month, and for complete months.

Pankaj

Quote: "Nivedita Kaushik"
Hi Friends,

How can we calculate the earned leave for the year? I have basic knowledge but still some confusion. If a person joins in the middle, like June 07, and now we have to maintain a new leave register, should we give earned leave to him from January 08, or should we show his name in the earned leave register after completing 1 year from his joining?

Nivedita Kaushik
Noida