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How Accrual is calculated based on the assignment date of the new leave plan?
When a new leave plan is assigned, accruals are recalculated based on the assignment date:
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Pro-rata Calculation
- Leave entitlement is adjusted proportionally for the remaining days in the year.
Formula:
Example
- Old Plan: Ends June 30, with 6 leaves accrued (1/month).
- New Plan: Assigned July 1, offering 1.5 leaves/month.
- Balance:
- Accrued under old plan: 6 leaves.
- Accrued under new plan (July–Dec): 1.5×6=91.5 \times 6 = 91.5×6=9.
- Total Leaves: 6 + 9 = 15.
- Leave entitlement is adjusted proportionally for the remaining days in the year.
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Carryovers
- Adjustments depend on whether carryover is allowed by the new plan.
This ensures accurate accruals aligned with the new plan's start date.