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Standard Accrual

Payroll | Leave Setup | Annual Leave Tables | Setup tab

Summary

This method (like the Fixed accrual method) is recommended for employees whose days/hours are consistent (don't change) from pay to pay.

The main difference between Standard and Fixed is that Standard accrues a proportion of annual entitlement based on the number of calendar days in a given pay divided by number of days in the annual leave cycle.

Example:

If employees annual leave entitlement = four weeks (160 hours); then for each pay frequency employees would accrue at the following rates:

  • Weekly = 1/52 of 160
  • Fortnightly = 1/26 of 160
  • Monthly = 1/12 of 160
  • Bi-monthly = 1/24 of 160
  • 4-weekly = 1/13 of 160

    IMPORTANT: This method doesn't care whether you work full-time (5days/40hrs per week) or part-time (2days/4hrs per week). If the employees both work fortnightly, then they'll both get 1/26 of whatever the entitlement units are. Therefore you need to setup a separate leave table for each group of employees with different profiled hours/days patterns

The following employees WILL NOT accrue with this method:

  • New employees with an employment start date after the pay period end
  • New employee's receiving a manual pay
  • Employees with a termination date on their employee record before the pay is processed

Accrual formula

= Accrual * (days between 'start date' and 'end date' inclusive + adjustment days) / 'AL Days in cycle'

Where

  • Accrual = Employee's Annual Leave table 'Entitlement (units)'
  • Start date = Employee start date for new employees or Pay period start date for existing
  • End date = Termination date for employee's being terminated or Pay pay period end date for existing and new employees.
  • Adjustment days = '0' for all employees, except those being terminated in a manual pay where the period end date is the same as the employee's last paid date which is count of days between Period start date and Last paid date (inclusive) * -1.
  • AL Days in cycle = For accuracy is a whole number.

    For weekly and fortnightly pay periods the value is normally 364 derived by: 'Days in this AL cycle'/7 * 7.

    For all other pay periods the value is normally 365, i.e. the value expected to be entered in the 'Days in this AL cycle' field.

    Note: For sick leave with Accrue entitlement weekly = "No", only the entitlement units are accrued or rolled.

Examples

  • An existing employee on a fortnightly pay entitled to 160 hours (4 weeks) annual leave

    = 160 * (14 + 0) / 364

    = 160 * 14 / 364

    = 6.1538

  • An existing employee on a monthly pay paid in March 2013 and entitled to 20 days (4 weeks) annual leave

    = 20 * (31 + 0) / 365

    = 20 * 31 / 365

    = 1.6986

  • The same monthly employee is then terminated in a manual relating to the March pay, with a termination date of 20th March

    = 20 * (20 + -31) / 365

    = 20 * -11 / 365

    = -0.6027

    This means that overall for the March period this employee accrued 1.0959 days. (1.6986 - 0.6027)

Accrual calculation method

Note: For the purposes of this section, 'days between start date and end date inclusive' is referred to as 'Days in this pay period'

For example, an employee has the following annual leave values:

Pay period:

Weekly

Days in this AL cycle:

365 days

Entitlement (units)

160

Total YTD accrued value at previous pay:

30

 

 1. Calculate the period proportion:

Days in this pay period

/

Days in this AL cycle

=

Period proportion

7

364

0.0192307

2. Calculate the pay period accrual:

Period proportion

x

Entitlement (units)

=

Pay period accrual

0.0192307

160

3.076912

3. Calculate the current Total accrued:

Pay period accrual

+

Total accrued value at previous pay

=

Current YTD Total accrued

3.0769

30

33.0769

 

Used for

This method of unit accrual is available for:

  • Annual leave tables
  • Sick leave tables

At Rollover

When you process a pay the contains the employee's annual leave end date PayGlobal splits accrual for the pay so that the proportion pre-rollover is placed into the employee's outstanding annual leave and the proportion post roll-over is the correct amount going in the accrual value for the new annual leave year.

NOTE: If you terminate an employee in the same pay period as their annual leave anniversary, PayGlobal ignores the rollover process.

See also

Unit Accrual Methods

Employees - Annual Leave (Aus)

Employees - Annual Leave (NZ)

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