Holiday accrual is when an employee earns holiday based on the number of hours they work.

In the UK, the default accrual rate is 12.07% of the hours worked, though in other jurisdictions this is different. The rate can be overridden on an allowance too.

If an employee has an allowance with an accrual schedule of each hour worked, the allowance will automatically accrue each time a period is signed-off (up to an accrual limit, if one is set) based on the hours the employee worked.

The employee can then request paid absence out of this allowance.

At the moment you sign-off a day or a week, allowances will be automatically credited with the holiday accrued based on the hours each affected employee worked in that period.

Example: Lucy worked 42.87 hours between Monday 1st and Sunday 7th. She has an allowance with an accrual schedule of 'each hour worked', with the default accrual rate of 12.07%. Her allowance will be credited by 5.17 hours for that week (42.87 x 12.07%) when the week is signed-off.

Read more about allowances.

Thanks to predicted accrual, an employee can raise a request for holiday before they've accrued the required balance, so long as they're predicted to have accrued enough before the holiday begins. This calculation considers the average hours per week the employee works, and how many weeks in advance the holiday is.

When raising an absence request on an employee's behalf, hover on the amount of holiday to be deducted to see the breakdown of the calculation.

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