Companies can set up leaves that accrue monthly where the employees earn some days at the end of each month instead of an annual allowance which is granted in the beginning of the leave period, we calculate the available days as follows:
Step 1 - Calculate current balance: Reduce leave days earned so far by leave days used so far
- Calculate leave days earned so far: We will calculate the total leave days earned by the employee previously in the current leave period. It is calculated by multiplying the number of months in service for this leave period by number of days that accrue monthly
- Less: Calculate leave days used so far : We will calculate the days previously used in the current leave period. This will only include accepted leave requests from the current leave period.
Step 2 - Reduce current balance by days used in the future:
- Days over used in future: Any booked leaves from future in the current leave period will be using up the current balance in addition to the days that the employee will earn in the future . If in case, the employee is using up the previous balance
Example:
Step 1: Calculate current balance: 8 days - 4 days = 4 days
- Leave days earned so far: If John did not carry over any days from last leave period and the current leave period started 4 months back and he accrues 2 days each month, he would have earned 8 days.
- Leave days used so far: John has used 4 days in previous months in the current leave period.
Step 2: Days used in the future:
- John has applied for a leave in 2 months from now for 8 days.
- He would be earning 4 days during the next 2 months
- He is using 4 more days than what he would be earning in the next 2 months.
Step 3: These over-used days will be deducted from the current balance. 4 days - 4 days = 0 days