Calculation of earned benefits in Core HR

How are earned benefits calculated in Core HR? It seems the accrued vacation time does not tally with the actual. 

In Core HR, the benefits earned by employees, say vacation days, are calculated as shown below (1st January, 2021 being the start date):

• 1st Jan, 2021: 0 days (as 1 year hasn’t been completed)

• 1st Jan, 2022: 1 day

Now employee earns 2 Days/Year for the next two years, i.e., 2023 and 2024.

• 1st Jan, 2023: 1 + 2 = 3 days (1st Jan, 2021 – 1st Jan, 2023 = 2 years completed)

• 1st Jan, 2024: 1 + 2 + 2 = 5 days (Here the start day is calculated from 2022 instead of 2021, so 1st Jan, 2022 – 1st Jan, 2024).

Next employee earns 3 Days/Year for the next three years, i.e., 2025, 2026 and 2027.

• 1st Jan, 2025: 1 + 2 + 2 + 3 = 8 days

• 1st Jan, 2026: 1 + 2 + 2 + 3 + 3 = 11 days

• 1st Jan, 2027: 1 + 2 + 2 + 3 + 3 + 3 = 14 days

Next employee earns 4 Days/Year for the next four years, i.e., 2028, 2029, 2030 and 2031.

• 1st Jan, 2028: 1 + 2 + 2 + 3 + 3 + 3 + 4 = 18 days

• 1st Jan, 2029: 1 + 2 + 2 + 3 + 3 + 3 + 4 + 4 = 22 days

• 1st Jan, 2030: 1 + 2 + 2 + 3 + 3 + 3 + 4 + 4 + 4 = 26 days

• 1st Jan, 2031: 1 + 2 + 2 + 3 + 3 + 3 + 4 + 4 + 4 = 30 days

This can be continued for future years in the same way as explained above. 

Another example is when the benefits are earned and calculated in one-year increments (as seen below). The calculations will follow the same logic. 

• 1st Jan, 2021: 0 days (as 1 year hasn’t been completed)

• 1st Jan, 2022: 1 day

Now employee earns 2 Days/Year for the next one year, i.e., 2023.

• 1st Jan, 2023: 1 + 2 = 3 days (1st Jan, 2021 – 1st Jan, 2023 = 2 years completed)

Next employee earns 3 Days/Year for the next one year, i.e., 2024.

• 1st Jan, 2024: 1 + 2 + 3 = 6 days

This can be continued for future years in the same way as explained above.

Was this article helpful?
0 out of 4 found this helpful