Pro Rated Leave Calculator
What is Pro Rata Leave?
Pro rata leave refers to a holiday entitlement that is calculated in proportion to the amount of time an employee has worked during the leave year. The term "pro rata" comes from Latin, meaning "in proportion." This calculation is essential for employees who start or leave a job part-way through the company's holiday year, or for those who work fixed-term contracts.
Unlike a standard loan or mortgage where costs accrue over time, annual leave is a benefit that accrues based on service duration. If you are entitled to 28 days of leave per year but only work for 6 months, you are logically entitled to half of that allowance (14 days).
How to Calculate Pro Rated Holiday Entitlement
The standard formula used by HR departments to calculate pro rated holiday entitlement is straightforward. It ensures fairness by correlating the leave allowance directly to the number of calendar days employed.
The Formula:
(Days Employed / Days in Year) × Full Annual Entitlement = Pro Rated Leave
Calculation Steps:
- Step 1: Determine the full annual leave entitlement in days (e.g., 20 days, 25 days, or statutory 28 days).
- Step 2: Calculate the number of days the employee is employed during the current leave year. This is the duration between the start date (or year start) and the end date.
- Step 3: Divide the days employed by the total days in the year (usually 365, or 366 for a leap year).
- Step 4: Multiply the result by the full annual entitlement.
Example Scenario
Imagine an employee named Sarah. Her company offers 25 days of annual leave per year. The leave year runs from January 1st to December 31st.
Sarah joins the company on July 1st. She will be working for the remainder of the year.
- Days in Year: 365
- Days Employed: July 1st to Dec 31st = 184 days.
- Calculation: (184 / 365) = 0.5041 (approx 50.4%)
- Entitlement: 0.5041 × 25 days = 12.6 days
Most employers will round this figure up to the nearest half or full day, giving Sarah 12.5 or 13 days of leave.
Important Considerations
Rounding: Statutory guidance often suggests that you cannot round down statutory leave entitlement, but rounding practices for contractual leave above the statutory minimum depend on company policy. This calculator provides the mathematical result and rounds to two decimal places.
Leap Years: In a leap year, the total number of days is 366. This slightly alters the daily accrual rate. Ensure you select the correct year basis in the calculator settings.
Part-Time vs. Part-Year: This calculator is specifically for "Part-Year" calculations (starting or leaving mid-year). For part-time workers who work full years but fewer days per week, the entitlement is usually pro-rated based on days worked per week compared to a full-time equivalent.