Annual Leave - Standard Accrual

For the majority of Employees, Standard Accrual is the best fit. Any employee that is set up with Standard Hours / has a predictable work pattern should use this method. If the number of hours that an Employee works varies greatly from period to period then Proportional Accrual may be required.

Employees should have a Pay Packet in every Main Pay Run (regardless of whether they have earnings in the period or not) as this is required to ensure that the correct accrual is calculated and that any anniversaries roll over.

Standard Accrual is calculated using the method below:

                               <days in period> / <days in year> * <annual leave entitlement> = hours accrued

This formula can be used to calculate the accrual in both a single Pay Packet and the full amount since their last anniversary rolled over.

For example:

• The employees Annual Leave anniversary date is 01/01/2017
• Current Pay Period End Date is 29/04/2017
• Pay frequency is fortnightly
• Employee works 40 hours per week
• Employee entitlement is 4 weeks

In the current Pay Packet the accrual would be:

                 14 / 365 * 160 = 6.14 hours

Since their last annual leave anniversary:

                119 / 365 * 160 = 52.16 hours

Note: accrual calculations do not discriminate between work days and non-work days (e.g. weekends). For this reason it is important not to have any breaks in Pay Group links or Accrual Method Employee Groups as it will slightly reduce the accrual.