Sage HR can automatically pro-rata time off accrual allowances for new employees who start working for the company during the leave year. You can find the options for pro-rating in the Allowance section of the time off policy settings under For new starters in the current year.
There are four options:
Give allowance depending on their start date
Give allowance depending on their start date
This is the default option. The system will apply a pro rata calculation based on the number of days the employee is employed during the leave year. The calculation is:
Pro rata amount = annual allowance x (number of days employed / total number of days in the year)
For example, if your policy accrues 28 days annually, resets on the 1st of January, the employee starts on the 1st of September, and it is not a leap year, the employee will be employed for 122 days out of 365, and the system will use the calculation:
28 x (122/365) = 9.3589 days
There is a sub-option: Do not accrue if employee started work X days after beginning of month. This allows you to postpone the accrual to the start of the next month if the employee’s start date is later than a particular day in the month.
Give full year’s allowance instead of automatically calculating current allowance based on employee start date
Give full year’s allowance instead of automatically calculating current allowance based on employee start date
This option turns off the pro rata calculation completely, so new employees will be given the full annual allowance.
Give allowance based on the quarter they start in (3/4, 1/2, 1/4, 1/8 of yearly allowance)
Give allowance based on the quarter they start in (3/4, 1/2, 1/4, 1/8 of yearly allowance)
This option gives the employee a rounded-down allowance based on the quarter they start in.
If the employee starts in the first quarter of the leave year, they will get 75% of the annual allowance
If they start in the second quarter, they will get half of the leave allowance
If they start in the third quarter, they will get 25% of the annual allowance
If they start in the fourth quarter, they will get 12.5% of the annual allowance
Give allowance based on the quarter they start in (full, 2/3, 1/3, 0 of yearly allowance)
Give allowance based on the quarter they start in (full, 2/3, 1/3, 0 of yearly allowance)
This option gives the employee a pro-rated allowance based on the quarter they start in, where:
If the employee starts in the first quarter, they get the full annual allowance
If they start in the second quarter, they get two-thirds of the full allowance
If they start in the third quarter, they get one-third of the full allowance
If they start in the fourth quarter, they get no allowance.
📎NOTE: Sage HR calculates an exact pro rata amount for all of these options. If you want to round up or down the calculated amounts, you can use the Change balance option to make a manual adjustment.