Time off allowance can be prorated according to the date each employee is hired (assigned) and/or terminated (unassigned) to/from a time off policy partway through an allowance cycle.
This is, unless you select to grant employees full allowance in either situation.
You can also opt to use calendar days in the calculation or workdays only (which takes into consideration each employee’s working pattern and bank holidays), and people's FTE%.
Formula used by Bob to prorate allowance for months worked fully:
(((Allowance × Employee FTE%) ÷ 12 Months) × Number Of Months Fully Worked In The Cycle)
Formula used by Bob to prorate allowance for partially worked months (e.g. according to hiring/assignment or termination/unassignment date)
((((Allowance × Employee FTE%) ÷ 12 Months) ÷ Number of Days* in the Month partially worked) × Number Of Days Worked In The Month)
*May be calendar days or workdays only, depending on the policy’s settings.
Calculation Examples
Let’s say a policy has an annual allowance of 25 days and proration by calendar days.
Employee 1: works January 1 – August 31, 2027
- The employee works eight full months.
- Formula: (((Allowance × Employee FTE%) ÷ 12 Months) × Number Of Months Fully Worked In The Cycle)
- 25 x 100% ÷ 12 × 8 = 16.67 days
- The prorated allowance is 16.67 days.
Employee 2: works February 15 – December 31, 2027, is a part-timer 50% FTE
- The employee works part of February and then 10 full months from March through December, 50% FTE
- 2027 is not a leap year, so February has 28 calendar days. The employee works 14 days in February, from February 15 through February 28.
- Partial February allowance: (25 ÷ 12 ÷ 28) × 14 = 1.04 days
- Allowance for March through December: (25 ÷ 12) × 10 = 20.83 days
- Total: 1.04 + 20.83 = 21.88 days.
- The prorated allowance is 21.88 days.
Employee 3: works April 3 – June 20, 2027
- The employee works part of April, all of May, and part of June.
- April has 30 calendar days, and the employee works 28 days, from April 3 through April 30: (25 ÷ 12 ÷ 30) × 28 = 1.94 days
- The employee works the full month of May: 25 ÷ 12 = 2.08 days
- June has 30 calendar days, and the employee works 20 days, from June 1 through June 20: (25 ÷ 12 ÷ 30) × 20 = 1.39 days
- Total: 1.94 + 2.08 + 1.39 = 5.42 days
- The prorated allowance is 5.42 days.