With the Leave Management module, you can set time off policies to give extra leave based on how long an employee has worked for you.
Important information
This will trigger on their work anniversary, not the time off policy reset date
You can only add the length of service allowance in days, not in hours — unless the policy is a working pattern policy, in which case the allowance can be set in hours.
📌TIP: If you want to give extra hours, calculate it as a decimal of a working day.
If the policy is a working pattern policy set in hours, the system uses the average working hours per day from the employee's reports page to calculate how much to increase the allowance by.
This length of service setting isn't available if you use Sage HR Essentials or Basic HR
How to enable this setting
Click your name on the top right, then click Settings.
On the settings menu, click Time off, then click Policies.
Either click Add new policy, or click Settings, next to an existing policy.
Scroll down, click Allowance to expand that section.
Select Enable allowance based on length of service, and then enter your allowance rules.
For example, After five years, allocate an additional one day.
📌TIP: You can add another condition. For example, you can give one extra day after five years and two extra days after seven years. Click Add condition to create the additional rule.
Extra leave conditions aren’t cumulative. Each new condition sets the allowance rather than building on the last one.When done, scroll down and click Save at the bottom.
The system recalculates the allowance on the employee’s work anniversary and adds any extra days automatically.
You can see the extra days from length of service in the individual allowance settings. In this example, the employee has 21 base days plus one extra day, giving a total allowance of 22 days.
How does it calculate when you add more conditions?
When you set more than one extra leave condition, the system doesn’t add them together. Each new condition replaces the previous one.
EXAMPLE
Base annual leave: 20 days
You add these lengths of service conditions:
After 5 years: +1 day
After 7 years: +2 days
After 10 years: +3 days
The total leave becomes:
5 years: 20 + 1 = 21 days
7 years: 20 + 2 = 22 days
10 years: 20 + 3 = 23 days
How to set this up
To replicate this in the policy settings:
Enable Allowance Based on Length of Service.
Click Add Condition twice so you have three conditions.
Enter:
After 5 years, allocate 1 additional day
After 7 years, allocate 2 additional days
After 10 years, allocate 3 additional days
What happens if you add +1 day each time?
If you enter:
After 5 years: +1 day
After 7 years: +1 day
After 10 years: +1 day
The total leave stays the same:
5 years: 21 days
7 years: 21 days
10 years: 21 days
This happens because Sage HR doesn’t add extra leave conditions together. Each condition replaces the previous one instead of building on it.
One‑off anniversary leave
The length of service feature sets a new allowance going forward. It doesn’t support one‑off awards.
If you want to give leave for one year only, either:
Add a future condition that resets the extra days to zero, or
Add days directly to the employee’s balance using Change balance