This leave type setup is one of the most common ways companies manage Annual Leave:
Entitlement Calculation: Based on the Employee’s Anniversary Year
Earn By: None – leave is granted in full at the start of the year.
It's commonly used for additional benefit leave types such as:
Study Leave
Birthday Leave
Pilgrimage Leave
Sabbatical Leave
Mental Health Wellness Leave
For step-by-step guide to set up a leave type, refer here: Setting up Leave Type
Entitlement Policy
When setting up a Leave Type, you’ll come across the Entitlement Policy section. This includes two important settings:
- Entitlement Calculation: Calculates the number of leave days an employee is entitled to.
- Leave Earning Method: Determines when the employee earns the leave.
These two settings work together to ensure leave is calculated and released correctly, based on your company’s policy.
| Entitlement Policy | What It Means |
| Entitlement Calculation is Based On: Employee Anniversary Year | Calculation is based on the employee’s anniversary date to determine the year of service. Leave amount is prorated according to years of service up to 31 December of the current year. If an employee reaches a new Year of Service (YOS) within the current year, Worksy system splits the leave entitlement based on each YOS tier and prorates the leave accordingly. |
| Leave Earning Method: None | Full leave entitlement is given at the start of the entitlement period. There is no monthly accrual or progressive earning. |
Example
Entitlement Table | ||
From Year | To Year | Entitled Day(s) |
0 | 1 | 8.00 |
1 | 2 | 12.00 |
2 | 3 | 16.00 |
Current Year: 2025
Employee | Hire Date | Year of Service Before/After Anniversary | Applicable Tier | Leave Earned |
A | 1 Jan 2023 | 1 Jan - 31 Dec 2025 = 2 Years | 16.00 days | (365 / 365) x 16.00 = 16 days |
B | 15 Apr 2024 | 1 Jan - 14 Apr 2025 = 0 Year | 8.00 days & 12.00 days | [(104 / 365) x 8.00] + [(261 / 365) x 12.00] = 10.86 days |
15 April - 31 Dec 2025 = 1 Year | ||||
C | 3 Jul 2023 | 1 Jan - 30 Jun 2025 = 1 Year | 12.00 days & 16.00 days | [(183 / 365) x 12.00] + [(182 / 365) x 16.00] = 13.99 days |
1 Jul - 31 Dec 2025 = 2 Years | ||||
D | 20 Dec 2025 | 20 Dec - 31 Dec 2025 = 0 Year | 8.00 days | 8.00 days |
Summary
Entitlement calculation is based on the employee’s anniversary date to determine the year of service.
Before the anniversary date, leave for 2025 is prorated based on the previous year of service.
After the anniversary date, leave for 2025 is prorated based on the new year of service.
When Leave Earning Method is set to None, the full leave is given at the start of the year.
For a new joiner, "Prorate leave for new employee" can be selected during the Generate Leave Entitlement process.
To illustrate the example of prorate, we use employee C who joined on 3 July 2023, and generate leave entitlement for 2023.
| Entitlement Calculation based on | Cycle | Calculation |
|---|---|---|
| Employee Anniversary Year | 03-07-2023 - 31-12-2023 (182 days) Year of Services: 0 Years | 182 / 365 x 8.00 = 3.99 D |
| Total Entitled Days | 3.99 D | |
When "Prorate for New Joiner" is enabled under the Employee Anniversary Year method, the system prorates the entitlement based on the join date until 31 December of the same calendar year.
Looking for specific example?
These scenario-based guides can help you understand how each Entitlement Calculation works:
We hope this explanation clarifies the matter. If you require additional assistance, do not hesitate to contact our support team.
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