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SOP Guide

Leave calculation: mid-year joiners and carried-over days

HRUpdated 14 Mar 2026150 viewsAuthor: Marcus Lee

Pro-rating for mid-year joiners

Formula: (Remaining months in leave year / 12) × Annual leave entitlement

Example: Staff joins on 1 August. Annual entitlement = 14 days.

Remaining months = 5 (Aug to Dec). Pro-rated leave = (5/12) × 14 = 5.83 days → round up to 6 days.

Carried-over days

  • Maximum carry-over: 7 days per year
  • Carried-over days must be used by 31 March of the following year
  • Unused carry-over after 31 March is forfeited

Unpaid leave deduction

Unpaid leave reduces the annual leave entitlement on a pro-rata basis:

  1. Calculate total unpaid leave days taken in the leave year
  2. Divide by 30 to get months of unpaid leave
  3. Reduce entitlement by (unpaid months / 12) × annual entitlement

Common scenarios

Staff joins 15 September:

  • Remaining months: 3.5 → round to 4 months
  • Entitlement: (4/12) × 14 = 4.67 → round up to 5 days

Staff takes 15 days unpaid leave:

  • Unpaid months: 15/30 = 0.5 months
  • Entitlement reduction: (0.5/12) × 14 = 0.58 → round down to 0 days (less than 1 day, no reduction applied)

System calculation

The payroll system auto-calculates leave balances. Staff should trust the system output. If a discrepancy is found, contact HR with the employment start date and a list of all leave taken.

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