Leave Accrual
Also known as: accrual, holiday accrual, PTO accrual
Leave accrual is the gradual build-up of leave over time — for example a set number of hours earned each month — rather than granting the full allowance upfront.
Leave accrual is the method of earning leave incrementally as the year progresses, instead of receiving the entire annual allowance on day one. An employee might accrue a fixed number of days or hours each month, each pay period, or per hour worked.
Accrual ties the leave someone has available to the time they've actually worked, which is fairer for new joiners and leavers and reduces the risk of an employee taking — and being paid for — more leave than they've earned before departing.
Formula
Monthly accrual = annual entitlement ÷ 12 (credited at the start or end of each month)
Common accrual frequencies
Leave is most often accrued monthly (entitlement ÷ 12), per pay period (weekly, bi-weekly, or semi-monthly), or per hour worked for shift-based roles. The accrual rate and frequency are set in the leave policy and should be applied automatically to avoid manual errors.
Related terms
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