When you set up your leave type with the Periodical balance release setting, you may want to understand how to prorate your employees’ leave using First Accrual and Last Accrual settings.

First Accrual

First Accrual determines how an employee’s first year of leave is entitled. 
If you select Prorate, your employee’s leave will be prorated based on the employee’s join date. For example, an employee who joins 1 December will be entitled to only 1/12 of the total entitlement for this leave type in that year.
If you select Full Amount, the full amount of leave for the period will be entitled to the employee regardless of their join or termination date. For example, an employee who joins 1 December will be entitled to the total leave entitlement for this leave type in that year.

Last Accrual

Last Accrual determines how an employee’s last year of leave will be entitled (i.e., they are leaving your company).
If you select Prorate, your employee’s leave will be prorated based on the employee’s termination date. For example, an employee who has tendered their resignation for 31 January will only have 1/12 of the full entitlement for this leave type in the last year. 
If you select Full Amount, the full amount of leave will be entitled to the employee during the last period of leave before their termination date. For example, an employee who has tendered their resignation for 31 January will have the full entitlement for this leave type in this year.

An example of first and last accrual

In this example, assume the following:

• Annual leave entitlement is 12 days, effective from Jan. 
• The employee’s join date is 01 Apr 2021. 
• The employee’s termination date is 31 October 2022. 
• Leave proration is based on the leave period of 01 Jan to 31 Dec. 
• Annual leave balance is released on the first day of the year. 

If you select Prorate for both First Accrual and Last Accrual:

• In 2021, the employee is entitled to 9 leave days out of the 12 leave days for the current leave period.
• The remaining 3 leave days were not granted to the employee as the employee did not start working in January. 
• In 2022, after he tenders his resignation and his last date is entered into the system, he will be entitled to 10 days out of 12 days of leave, as they are not working in November and December.

If you select Full Amount for both First Accrual and Last Accrual, the employee will be entitled to the full 12 days for both 2021 and 2022.