How to Set Up Pro-Rated Leave Credits

May 19, 2025

Pro-rated leave credits ensure employees earn leave based on the actual days they work, making leave allocation fair for those who join mid-period or have unpaid absences. Here’s how to set it up:

Steps to Set Up Pro-Rated Leave

  1. Open Leave Entitlement Rule Setup
    Go to Control Panel > Leave > Entitlement.
  2. Enable Proration
    Turn on proration and choose the calculation method:
    • Based on days worked
    • Or post-crediting based on actual workdays
  3. Customize Slabs
    Define slabs like:
    • 1–20 days worked = 1.25 leave credits
    • 21–30 days worked = full leave credits
  4. Specify Absence Treatment
    Decide how to treat absences such as Loss of Pay (LOP):
    • Count as non-working days (reduce leave credits)
    • Or treat as working days if applicable
  5. Save Settings
    Save and apply the configuration.

This setup ensures fair and accurate leave credits aligned with employees’ actual work periods.