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How do I manage my employees' vacation pay counters
Understanding the basis for calculating paid leave
Understanding the basis for calculating paid leave

Working or business days, you can decide according to your organization!

Marine avatar
Written by Marine
Updated over a week ago

The correct settings for your paid leave counter calculation base is crucial to correctly deduct your teams' leave in the payroll. If in doubt, don’t hesitate to reach out to your accountant !

Head to Settings > Locations & schedules section > Paid leave calculation :

  • Business days : When the employee takes a week of paid leave, they take 5 days off. The employee acquires 2.08 days of paid leave every month.

  • Working days : When the employee takes a week of paid leave, they take 6 days off. The employee acquires 2.5 days of paid leave every month.

  • On 7 days: Specific to Spain, but some French collective agreements may allow this. 7 days are deducted and the employee acquires 3 days of paid leave every month.

💡 Good to know :

  • Part-time employees acquire as many days of paid leave as full-time employees.

  • Each employee generally accumulates 5 weeks of paid holiday (that is to say 25 to 30 days), whether the location is set up in working days or business days.

  • This configuration must be fully set up in order to be able to monitor your employees' paid leave counters.

  • If required, you can also change the default monthly acquisition value here:

To find out how to indicate paid leave on the schedule, go here 👈


How is paid leave acquired and deducted ?

To understand your employees' paid leave balances, let's go back to basics !

Head to the HR tab > Paid leaves configuration

For each contract, your employee will have a paid leave counter, with N balance (the current period) and N-1 balance (the previous period). The balance is calculated by deducting the days taken from the ones acquired.

👉 The paid leave acquisition

In the night from the last day of the month the first day of the following month, your employee will acquire new paid leave. The acquisition of the current period evolves with the montly acquisition which has been set up in the paid leave calculation.

Let's look at Matthew. For example, he works at Ana's loft where the paid leave calculation is in working days. He acquires 2.5 days every month. In the current period, on the night of the 29th February to the 1st March, we go from 0 days acquired to 2,5 days acquired.

👉 The paid leave deduction

When an employee is on paid leave, their balance goes down. The absences will be deducted from the previous period, the N-1 column. Absences will be deducted from the N column as soon as the N-1 balance is 0 days.

Let's look at Lundy's balance !

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.

When a paid leave absence is on the schedule, it will directly impact the "Taken" column on the date of the paid leave.

Looking at Amy's counter, she has 12.5 days acquired on the current period.

2 paid leave days scheduled on the 16th and 17th November.

The absences appear in the taken column of the paid leave counter.

Next step : what happens at the end of a period ? The answer is right here 👈

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