This accrual method works differently from the standard anniversary or to-date methods.
It’s entirely transactional — the balance is simply the sum of all accrual and usage transactions.
While this method effectively builds a pro-rated balance, it does so based on the actual time recorded each pay period, rather than time passed since the last anniversary.
Calculating an accrual rate
To use the Percentage per pay method correctly, you need an accurate percentage rate.
This determines how much leave accrues each pay based on the total time recorded.
To calculate the correct rate, divide the amount of leave earned per year by the total number of working units in a year.
This ensures the system accrues the correct total over time.
Unit type | Example | Formula | Result |
Hours | 160 hours leave per year ÷ 2080 working hours | 160 ÷ 2080 | 7.69% |
Days | 20 days leave per year ÷ 260 working days | 20 ÷ 260 | 7.69% |
Weeks | 4 weeks leave per year ÷ 52 working weeks | 4 ÷ 52 | 7.69% |
Notice the percentage remains consistent — it represents the same entitlement whether expressed in hours, days, or weeks, as each reflects the same amount of time off. In simplest terms, this example's ratio equals 1/13 of a working year.
How the calculation works
Unlike anniversary-based accruals, this method requires a link to other paycodes.
The linked paycodes determine the total hours worked or paid, which the system uses to calculate the accrual.
The formula is:
total hours of linked paycodes × accrual rate = total leave accrued
Example
In this example, the leave code is set up with an accrual rate of 7.692038% and is linked to:
All ordinary time work codes
All paid leave codes
The employee's recorded totals are:
20 hours of ordinary time and
20 hours of annual leave
A total of 40 hours
Therefore, the calculation is:
40 hours × 7.692038% (or 0.07692038) = 3.077 hours
Once you’ve determined your accrual rate and how it should behave, you can configure it as a Percentage per pay leave code.
Setup of percentage per pay accrual
Determine your accrual rate
Decide which paycodes the accrual will operate on.
Set up the leave code in line with the instructions laid out under the Configuring leave settings guide, but make sure to set:
Use and accrue as Percentage per pay
Accrual rate as the required percentage for this leave type
Use the options under Calculate % on, to link which paycodes the accrual will operate on.