How do I calculate the correct accrual factor for Time off?

In this article you can find out, how to calculate the correct accrual factor for absence.

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Absence hours accrual is calculated using an accrual factor. In the example below, this factor is calculated for a 40-hour per week contract.

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This calculation can be made when the number of contract hours and leave days per year are known.

If you only know the number of vacation days of your employees.
You can see from the table below what the corresponding accrual factor is.

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To create the correct build-up of absence hours, you should always do a short calculation to ensure you set the right build-up factor for the employees.

The easiest way to calculate this is as follows:

  1. What total hours may be taken over an entire year?

  2. What is a full-time contract?
    At one company 40 hours is full-time, at another company 38, for example.

After you can answer the 2 questions, you can calculate the accrue:

Full-time hours per week x 52 (weeks) = Total contract hours for the whole year

Total contract hours per year : total leave hours per year = accrual factor.

Example:

 

Fulltime contract hours: 38 hours
Max Absence hours: 210 hours

38 (hours) x 52 (Weeks)= 1976 hours

210h : 1976h = 0,1062753036437247 (Accrual factor)

 

Caution: The system calculates the vacation entitlement based on 5-days week. If the employee works part-time or 6 days a week, the amount of the vacation days in the system should be entered based on 5-days week entitlement.

 

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