Calculation of Prorated Annual Leave

Question

How does ByteHR computes the prorated Annual Leave (AL)?

Answer

When Prorate New Joiner or Prorate Resign is enabled, ByteHR automatically calculates the employee's leave entitlement based on their employment period.

The calculation consists of two steps:

1. Calculate the prorated leave entitlement based on the employee's service period.

2. Round the final leave balance according to the system's leave rounding rules.

   
   

Example: Employee Resigns Mid-Year

• Leave entitlement: 8 days/Year
• Join Date: 1 January 2026
• Last Working Date: 14 July 2026
• Leave Settings: Prorate New Joiner and Prorate Resign are enabled

• Calculation:

  01/01/2026 - 14/07/2026 = 195 days = 6.5 months -> round off to 7 month

  Prorated Annual Leave = 8 AL entitlement/12 months x7 months = 4.67 days

  0.67*8 work hours/day = 5.36 = 5 hours

  0.36 round off to the nearest system's rounding rules: 0.25 mins

Total 4 Days 5.25 Hours

Question: What's system's Rounding Rules?

Answer: The system rounds off to the nearest value

The rounding Rules configured in the system: 0.25, 0.5, 0.75, 1.00

Example:

4.87 days

0.87 * 8 work hours/day = 6.96

0.96 will be rounded off to the nearest value which is 1.00. Hence the prorated Annual Leave is 4 days and 7 hours.

Question: Why does the leave shown in Days and Hours instead of Days only?

Answer: ByteHR displays leave in Days + Hours to provide a more accurate leave balance.

Example:

Instead of showing: 4.67 days

The system displays: 4 Days 5.25 Hours

This allows employees to utilise both full-day and partial-day leave accurately.