Pro Rata Leave Calculator
Understanding Pro Rata Leave
Pro rata leave entitlement refers to the amount of holiday time an employee is owed based on the proportion of the year they have worked or the proportion of full-time hours they work. This is essential for calculating fair time off for part-time staff, new starters, or leavers.
How Calculation Works
The calculation is based on two primary factors:
- Part-Time Ratio: Compares the employee's contracted hours against standard full-time hours. If a full-time week is 40 hours and an employee works 20, they are entitled to 50% of the standard leave.
- Duration of Employment: Calculates the exact number of days the employee was employed during the leave year. If an employee joins halfway through the year, they are entitled to roughly half of their annual allowance.
The Math Behind the Calculator
The formula used in this tool is:
(Entitlement × (Employee Hours ÷ Full Time Hours)) × (Days Employed ÷ Days in Year)
Example Scenarios
Scenario 1: Part-Time Worker (Full Year)
Standard entitlement is 28 days. Full-time hours are 40. Employee works 30 hours.
Calculation: 28 × (30 ÷ 40) = 21 Days leave.
Scenario 2: Mid-Year Starter
Employee starts exactly halfway through the year (182 days employed). They work full-time hours.
Calculation: 28 × (182 ÷ 365) = ~14 Days leave.
Why Precision Matters
Getting this figure correct is crucial for payroll compliance and employee satisfaction. Undercalculating can lead to legal disputes, while overcalculating can impact business productivity.