Allowance Generation Formulas and Examples

Generation of allowance for paid leave, sickness and other absences depends on the following settings:

• Accrual Method selected in the Absence Plan - defines when allowance is generated and granted to employee
• Paid Leave Calculation Rule (also defined in the Absence Plan) - defines how many days of annual allowance an employee is entitled to
• Absence Allowance Accrual Type (Settings > Settings and Configuration > Time and Attendance, Advanced tab) - defines whether the allowance is calculated based on the calendar days or working days
• Employee Work Pattern (Settings > Settings and Configuration > Time and Attendance) - defines the number of working days in a period

The following table contains formulas applied in case of different Accrual Method and Accrual Type setting combinations. The examples in the table are based on the following case:

• employee has 20 days of paid leave per year, based on the paid leave calculation rule;
• employee work pattern is standard (Monday - Friday, 8 hours per day);
• the allowance calculation date is March 1, 2017;
• Accrual From in the Absence Plan is set to Company Year Start Date;
• the company year start date is Jan 1;
• the number working days is based on the US calendar for 2017.

If the Do Not Accrue Allowance During Unpaid Leave check box (Settings > Settings and Configuration > Time and Attendance, Advanced tab) is selected and employee takes unpaid leave of any type, all the allowances will be recalculated based on the following formula: Number of paid leave days based on the Paid Leave Calculation Rules * Current basis of absence allowance (depends on Accrual Method) - number of unpaid leave days / Total number of days in a year. The examples of recalculation for each accrual method and type can be checked in the Unpaid Leave Recalculation Example column of the table. The examples assume that employee has taken 5 days of unpaid leave.