How to Calculate Annual Leave Entitlement

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Human Resources benefits professionals and relationship managers typically must understand how to calculate annual leave entitlements. Having this knowledge as an individual employee will benefit you as well. It will help you know when you are entitled to take time off and whether you would owe the company money back for vacation or personal days you took that you hadn't accrued yet.

Account for Accrued Personal Days

Write down the total number of personal days that your firm allows you to take. If this is your first year working with the firm, refer to your hire date, then subtract one personal day for each quarter before you were hired. For example, if you were hired in the second quarter and your firm allots four personal days for a calendar year, subtract two days for the two incomplete quarters. This will leave you with two personal days for the year.

Calculate monthly time off accrual days. Look at your agreed weekly standard work hours and your professional level. For example, if you are a full-time vice president (VP) working 35 to 40 hours a week and your firm allows VPs to take four weeks of vacation a year, divide 20 business days by 12. Your annual leave entitlement is 1.6 days a month. For companies that allow employees to accrue time off only January through October, divide 20 business days by 10 for a total of 2 days of leave accrued at the end of each worked month.

Divide your scheduled number of work hours by the number of hours in a standard work week if you are a limited-hour employee. For example, if you work an agreed 17 hours a week and the standard work week for full-time employees is 40, divide 17 by 40 to calculate the number of leave days you accrue each month. Multiply this number by 12 to arrive at your total annual leave entitlement.

Add additional time off to your total eligible leave entitlement as a full-time employee depending on the tenure policy. Some companies award full-time employees another week to leave entitlement after you have worked at the firm for five or 10 years and another week after you have worked at the company for 20 or more years. For example, if you are a VP who has worked at the firm for 20 years, add four weeks of base vacation time with three additional weeks of leave you earned for serving the firm for 20 years plus your four standard annual personal days for a total of 39 annual leave days.

Include approved carry-over time or unused vacation days from the previous year. Total your personal days, approved carry-over, base vacation weeks and additional vacation weeks for tenure.

Factor in the total number of sick days that your firm allows each year. For example, if your firm allows full-time and limited-hour employees to take five sick days a year, add these five sick days to your total allotted vacation and personal days combined.