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How to Calculate Pro Rata Leave Accrual?

Author Samantha Haigh@Microkeeper
Category Leave
Last Modified 10/10/2024

To calculate the rate of Leave Accrual, there are two formula's needed.
One to find out the total hours of leave per year, and the second to divide that into a weekly accrual.

First Formula: 

Weeks of Leave per Year x Hours worked per week = Total Hours Accumulated per year

  • How many weeks of that type of leave per year the employee receives.
    Most Employees receive 4 weeks of Annual, and 2 Weeks of Personal. 
  • How many hours the Employee is contracted to work per week.
    Most business' have a Full Time 38 hour week, or a 40 hour week, but this can work for Part Time staff too, who may only work one or two days. 

Second Formula: 

Total Hours Accumulated per year  / Weeks in a year (52) = Total Hours Accumulated per year

  • Total Hours of Leave per year.
  • How many weeks in a year, always 52.

An Example: 

Emily has recently been promoted and now works full time, and we need to know that the Annual Leave is accruing correctly.

Emily now works 38 hours a week, and she receives 4 weeks of annual leave a year.
To work out the accrual the calculation is: 

4 weeks of Annual Leave x 38 hours per week = 152 Hours per year. 

152 hours per year / 52 weeks in a year = 2.923 hours per week.