Leave Entitlement Based On Calendar Year (Medical Leave)

Modified on Sun, 7 Dec at 10:43 PM

This article explains the leave settings for multiple leave types that are commonly granted in full at the start of each calendar year, without proration or monthly accrual.

These include:

Annual Leave
Medical Leave
Maternity Leave
Paternity Leave
Compassionate Leave

For step-by-step guide to set up a leave type, refer here: Setting up Leave Type

According to the Employment Act 1955, it does not require prorating medical or hospitalization leave for employees who join mid-month or mid-year. Once an employee has met the qualifying period, the full calendar-year entitlement applies.

Medical leave entitlement is based on completed years of service with the employer, which serves as the qualifying period. For example:

Employees with less than 2 years of service are entitled to 14 days of medical leave per calendar year.
Employees with 2 to less than 5 years of service are entitled to 18 days per calendar year.
Employees with 5 or more years of service are entitled to 22 days per calendar year.

For hospitalization leave, all employees are entitled to 60 days per calendar year once certified by a registered medical practitioner, regardless of years of service.

This is based on your current leave settings, where the Entitlement Calculation is based on the Calendar Year and the Leave Earning Method is set to None.

Entitlement Policy

Using Medical Leave as an example, when you are setting up a Leave Type, you will come across the Entitlement Policy section. This section 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: Calendar Year	Every leave period runs from 1 January to 31 December, regardless of the employee’s hire date/anniversary.
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	2	14.00
2	5	18.00
5	99	22.00

Current Year: 2025

Employee	Hire Date	Years of Service	Applicable Tier	Leave Earned
A	1 Jan 2023	2 years	18.00 days	18.00 days
B	1 Dec 2020	5 years	22.00 days	22.00 days
C	1 Aug 2025	0 year	14.00 days	14.00 days

Entitlement is determined as of 1 January of each year.
No proration means even new hires or resigners get full entitlement, regardless of hire or last working dates.
Eligibility criteria (sickness, childbirth, marriage, death of family member) should still be managed separately. The entitlement may only reflect the maximum allowable days per 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.