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How are Pro-rated Accruals Calculated
How are Pro-rated Accruals Calculated

When choosing to prorate your Time off accruals, our system will automatically do the math for you.

Heather avatar
Written by Heather
Updated over a week ago

We provide an option to automatically calculate and pro-rate time off accruals in the first period of the employee joining when putting together your Time Off Policies.

The pro-ration in Collage is based on the start date till the end of your time off period and our system will exclude weekends from it's calculation.

We do NOT exclude Holidays as it's based on total days employed in the year.

For Biweekly or Semimonthly Accrual frequency, would be till the last day of your currently Biweekly or Semimonthly period.

For Annual Calendar year accrual frequency, the end date would be December 31

Below is an example of calculating Pro-ration for an employee that started on March 22, 2022 with 15 days of Yearly Entitlement

First we can start by excluding the Weekends from the 365 days of the year to find the Total Weekdays in 2022

  • As there were 53 Saturdays and 52 Sundays in 2022, the Total Weekdays is 260.

  • March 22 is then the 56th weekday of the 2022 year.

You can now calculate the number of weekdays they will be employed inclusive of March 22 for (260-57) = 203 days

Total weekdays worked (203) / Total weekdays in 2022 (260) * Their Yearly entitlement (15) will give you the pro-rated amount (11.77) that we've calculated within Collage.

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