How the ‘Entitlement Calculation’ is made, what the difference between all the types?

1) Accrual on Pro-rata Basis

• Leave is earned gradually over time based on how long the employee has worked.
• The employee receives a portion of their leave entitlement each month.
• If an employee works for one month out of a year, they earn 1/12th of their total annual leave.

Example:
If the annual entitlement is 18 days, the employee earns 1.5 days per month.
If they join mid-month, the leave for that month is calculated proportionally to the number of days worked.

2) Full Entitlement on Pro-rata Basis

• Leave is calculated based on the remaining duration of the leave year from the employee’s start date.
• The system grants the entire calculated entitlement at once, instead of monthly.

Example:
If the annual entitlement is 18 days and the employee joins halfway through the leave year, they will receive 9 days immediately for that year.

3) Full Entitlement:

- Under this method, employees receive their full annual leave entitlement without any adjustment based on their start date.

- This is typically implemented for employees who have completed a full year of service.