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

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 on a weekly basis (up to an accrual limit, if one is set) according to your signed-off hours.

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

How it works

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 * 12.07%) when the week is signed-off.

Read more about allowances.

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