Common accrual methods
Monthly accrual suits most private companies because it is fair to joiners and leavers and stops people from using a full year's leave in their first month. The OSH Code method for workers' annual leave is based on days worked: one paid leave day for each 20 days of work, once 180 days are completed in a calendar year, as set out in the leave entitlement rules.
- Monthly accrual: a fixed number of days credited each month
- Accrual on days worked: leave earned in proportion to days actually worked
- Annual grant: the full year's quota credited on the first day of the leave year
- Pro rata grant: a joiner gets only the share for the months left in the year
Accrual, quota and balance compared
The quota is how much leave a person can earn in a year, for example 18 days of earned leave. Accrual is how that quota reaches them, for example 1.5 days a month. The balance is what they have available today: past accruals and carry forward, minus leave taken. Mixing these up leads to disputes, such as a joiner in October expecting the full year's quota on day one.
Getting accrual right
Decide how part months are handled, how accrual is rounded, whether leave keeps accruing during long unpaid leave, and what the maximum balance is. In ZeniaHR, accrual is monthly: part months for joiners and leavers are prorated, each credit is rounded to half a day, a maximum balance caps the total, and every credit appears as a separate entry in the Leave Ledger.
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What is accrued leave?
Accrued leave is the leave you have earned so far based on your time at work, under the company's accrual rule. For example, with 1.5 days of earned leave a month, you have accrued 9 days after six months. Accrued leave, plus any carry forward and minus leave taken, gives your current leave balance.
Does leave accrue during leave without pay?
It depends on the policy. Many companies stop or reduce accrual for months with long unpaid leave, because accrual is meant to reward time worked, while others keep accruing for short spells. Where the rule is silent, disputes follow, so the leave policy should state how unpaid leave affects accrual, with an example.