Leave Rates

Set up a pay code to calculate leave, add it to the employee pay codes, and then calculate the employee's leave for each pay period. These steps are included in the each pay period steps checklist. Following the steps checklist will help you process leave, review the calculated leave entries, and make sure leave is calculating correctly for every employee.

In payroll and human resources, a leave rate refers to the rate at which employees accrue or earn paid time off (PTO) or leave. This rate determines how much leave an employee accrues based on their length of service, hours worked, or other factors.

Leave rates can vary depending on company policies, employment contracts, or collective bargaining agreements. Common methods for calculating leave rates include:

Accrual Based on Hours Worked: Employees earn a certain amount of leave for each hour worked. For example, an employee might earn one hour of leave for every 40 hours worked.
Accrual Based on Length of Service: Employees earn leave based on their length of service with the company. For example, employees might earn a certain number of days of leave per year based on their years of service.
Flat Rate Accrual: Employees earn a flat amount of leave per pay period or year, regardless of hours worked or length of service.

Leave rates are important for ensuring that employees are fairly compensated for their time off and for managing leave balances accurately. Employers must comply with relevant labor laws and regulations when setting and implementing leave rates.

In this section:

What is a leave rate?

How do I add a leave rate?

How do I add a leave level to a leave rate?

What is a leave rate modifier?

What is the initial level date?

Leave Rates

Webinars

Annual Accrual Method and Limit

Accumulation Limit

Carryover Limit

Leave Type