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Acquisition and deduction of paid leave

Let's explore the calculations behind the acquisition and deduction of paid leave, whether you're on 5 or 6 days base!

Cyndel C. avatar
Written by Cyndel C.
Updated over a week ago

Setting up the basis for paid leave calculation

Choosing the right calculation base is essential for managing the acquisition and deduction of your team's paid leave in payroll. If in doubt, consult your payroll manager!

You can choose between 5 days or 6 days base. What's the difference?

  • When an employee takes a week of paid leave, they are deducted:

    • 5 days if you use 5 days base

    • 6 days if you use 6 days base

  • The monthly acquisition is:

    • 2.08 days per month for 5 days base (equal to 25 days a year)

    • 2.5 days per month for 6 days base (equal to 30 days a year)

In both cases, it represents 5 weeks' paid leave per year.

Go to Settings > Locations & schedules > your location > Labour settings :

  • Choose your base among 5 days, 6 days or 7 days base

Note :

  • The acquisition of paid leave is similar for both full-time and part-time employees.

  • The 7-day calculation base is specific to Spain but may suit certain specific French collective agreements: 7 days are deducted for a week of leave, and the employee acquires 3 days of paid leave per month.

  • Adjust the monthly acquisition if needed, which has been calculated automatically.

  • Enter the start date of the acquisition period. The end date will update automatically.

Monthly acquisition of paid leave

On the night from the last day of the month to the first day of the following month, your employee accrues an additional 2.08 or 2.5 days of paid leave, which are added to the accrued balance for the current accrual period N.

e.g: On the night of February 29th to March 1st, Matthew acquires an additional 2.5 days of paid leave: he goes from 0 to 2.5 days acquired for his period N.

Deduction of paid leave from employee balances

Whenever your employee takes paid leave, his/her balance is deducted. If there are still acquired leave days from the previous acquisition period N-1, this column is deducted first. The balance of acquired leave for the current acquisition period is deducted only if the N-1 balance is at 0 days.

e.g: Lundy has a 4 day balance in N-1 and 12.5 days in N.

He has taken 6 days off, 4 days will be deducted from N-1 and 2 days from N.

And to know exactly what happens when transitioning from one acquisition period to another, click here! 👈

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