Employee termination can be a hassle especially when it comes to calculating the leave balance.
Kakitangan.com proudly presents you this new feature, not only we automate the pro-rata leave balance calculation but also send the balance amount directly to your payroll calculator.
Wonder how this magic works? Check them out with just a few steps below.
How to enable this feature?
Go to payroll settings -> Pro-rata Annual Leave -> Enable it
Note: If you are familiar with our pro rata salary then you will find the pro-rata leave balance works as the similar concept.
How your setup can affect the final calculation?
- Annual leave entitlement
Annual leave entitlement days under leave setting will affect the pro-rata leave entitlement calculation.
2. Rounding for pro-rata leave
Your setting on rounding for pro-rata leave under leave setting will affect the pro-rata leave entitlement calculation.
- Round down
- Round up to the nearest: full or half day
3. Working days for annual leave encashment
Determine the working days you would like to use for annual leave encashment calculation.
Note: Every company has a different method/policy when it comes to pro-rata annual leave, so it's up to you to determine the working days in a month here.
How does the calculation work?
Let's put the calculation into real scenarios for better understanding.
Scenario A: Amy's profile setting as below
- Basic salary : RM1500
- Working days of this month: 26 days
- Actual worked days of this month: 21 days
- Termination date : 22 June, 2020
- Employment effective date : 01 May, 2020
- Annual leave entitlement (accrual) : 14 days
- AL taken: 1 day
- Pro-rata leave rounding: Round up to the nearest 1 day
- Working days for Annual encashment: 26 days
Scenario B: Amy's profile setting as below
- Basic salary : RM1500
- Working days of this month: 26 days
- Actual worked days of this month: 21 days
- Termination date : 22 June, 2020
- Employment effective date : 01 May, 2020
- Annual leave entitlement (full entitlement) : 14 days
- AL taken: 1 day
- Pro-rata leave rounding: Round down to the nearest 1 day
- Working days for Annual encashment: 22 days
![](https://blog.kakitangan.com/content/images/2020/06/Capture11111-1.png)
![](https://blog.kakitangan.com/content/images/2020/06/12-6.png)
![](https://blog.kakitangan.com/content/images/2020/06/123-1.png)
Where do I see the pro-rated leave balance and the leave encashment amount?
- On User profile -> Actions -> Terminate Employee -> Select termination date -> you will find the balance info under the employee's name
![](https://blog.kakitangan.com/content/images/2022/03/image-10.png)
![](https://blog.kakitangan.com/content/images/2022/03/image-11.png)
2. On Payroll ->under Payroll calculator -> Select terminated employee name -> Basic earnings -> you will find the annual leave encashment amount. To find out how to get that amount, click on How is this calculated?.
Tip: If you can't see what's showing below. You can un-check the "Include in payroll" box and re check it to make sure the page gets refreshed with the right figure.
![](https://blog.kakitangan.com/content/images/2022/03/image-12.png)
You will come to this screen with details about the terminated employee and how the annual leave encashment is being derived as well as the final pro-rated salary.
![](https://blog.kakitangan.com/content/images/2022/03/image-13.png)
Quick tip: Options for users to select formula or numbers to understand how the calculation works.
Hope this feature helps! :)
![](https://blog.kakitangan.com/content/images/2020/05/images_2018_04_v1.png)