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May06

How do you calculate prorated vacation of 15 days and 5 sick days?

I am an HR consultant and I made the worst mistake,i excuted an offer letter with 15 vacation days and 5 sick days for an employee who start date is May 1, how do I calculate their vacation. What is the formula? what do I multipy and or divide? Math is not my favorie so i need to see in full writing.

Thank you
Madelyn M.

Hi Madelyn! No problem, we are here to help!

We assume that you will be prorating the vacation and sick time for 2009– the first year of employment. It’s actually fairly easy to do.

For the 3 weeks of annual vacation, take 15 days x 8 hours = 120 hours of vacation, divided by 52 weeks per year= 2.307 hours of vacation earned per week. We checked the calendar, and an employee hired on May 1 will work exactly 35 weeks in 2009. So 2.307 hours of vacation x 35 weeks =  80.75 hours of vacation. That is two weeks of vacation, plus 3/4 of an hour.

For the 5 days of sick leave, take 5 days x 8 hours = 40 hours, divided by 52 weeks per year =0.769 hours of sick leave earned per week, x 35 weeks = 26.915 hours of sick leave. Most employers would round this to 27 hours of sick leave. That is 3 days plus 3 hours of sick leave.

Note that not every employer would prorate annual leave in this way. Some employers would award the entire 15 days of vacation and 5 days of sick leave on the employees first anniversary (May 1, 2010.)  Other employers would accrue the employees sick time and vacation time based on hours worked. But it appears from your question that your client is prorating it based on the number of weeks worked this year.

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9 Responses to “How do you calculate prorated vacation of 15 days and 5 sick days?”

  1. teena Says:

    Hi…How do you do the above computation basing on hours worked? we work 44.5 hrs per week. Please do the computation for pro-rated leave on Year 2011 for an employee who is hired on April 18, 2011.

    Thanks.

  2. Caitlin Says:

    Hi Irene! We would need to know how much leave the employee would receive each year, to figure the prorated leave. However, this employee worked about 36 weeks this year. If you multiply total vacation time by .6923, that will give you the prorated amount. For each 40-hour “week” of paid vacation, this employee is entitled to 27.69 hours of prorated vacation. HTH, and thanks for reading the blogs!

  3. Caitlin Says:

    Hi teena! Sorry about the late reply — we did not see your message until today. An employee hired on April 18 would have worked about 37 weeks during the year, so she would be entitled to 37/52 of the annual vacation that your company offers. You could multiply the hours of vacation by 0.7115, to figure out how much vacation this employee was entitled to. If you offer one week (40 hours) of annual vacation,this employee would be entitled to 28.46 hours.
    Usually hours worked are irrelevant. Normally, employers only pay 40 hours of vacation per week, even if the employee averages 50 or 60 hours per week. However, if your company is very unusual and offers 44.5 hours of vacation per “week”, the employee would be entitled to 44.5 x 0.7115 = 31.66 hours of vacation.HTH, and thanks for reading the blogs!~ Caitlin

  4. Lois Says:

    We are currently on an anniversary date basis for vacation. Hired 8/1/2010…you get your 2 weeks of vacation on 8/1/2011, then 8/1/2012. We have a new boss, transitioning everybody to a January 1st basis.

    I need help figuring out how to make this transition. My thought is that on 8/1/2013, they would receive what they would normally have received. Now, how do I get them to January?

  5. hrlady Says:

    Hi Lois,
    Assuming 2014 will be a transition year, which means that employees will receive a one-time adjustment in their vacation pay, prorated based on their anniversary date. That vacation can be used until December 2014.
    On January 1, 2014 employees will be awarded prorated vacation based on the length of time between their 2013 anniversary date and December 2013. In this way, the employees do not lose any vacation time – it is just awarded in January 2014 rather than later in the year on their anniversary date.
    Thank you for reading the Humanresourceblog.com

  6. patti Says:

    Good morning, we have new exec. dir. coming on board and was wondering for a pt working 18 hrs/week if prorating for 11 paid holidays they would be paid for on all 11 holidays. So 11 x 18 = 198 paid Holiday hours ???? and since on any given day employee works 6.5 hrs…11 x 6.5 = 71.50 which is way less than 198. Is this right?

  7. hrlady Says:

    Hi Patti,
    You have to calculate the proportional amount of holiday hours. First, identify the full time equivalent amount of holiday time. Assuming a standard full time employee works 40 hours per week or 8 hours per day, the full time equivalent accrual would be 88 holiday hours per year (8 hours per day x 11 holidays). Next, calculate the proportion of full time hours to be worked by the part time employee. In this example, the employee will be working 18 hours per week and, again, assuming a 40 hour full time equivalency the employee would be working 45% of the full time hours (18 part time hours/40 full time hours x100). The part time employee would be entitled to 45% of the total holiday hours or 39.6 hours (88 full time holiday hours x 45%).

  8. Riena Says:

    An employee hired on March 17, 2014, how do I calculate their vacation. What is the formula?

    Thanks.

  9. hrlady Says:

    Hi Riena,
    We’re sorry for the delayed reply. It’s hard to give you an exact calculation without knowing the specifics i.e. amount of time offered, hours per week worked etc.
    We’ll assume 3 weeks vacation, five day workweek and 40 hours worked per week. Number of vacation days offered (15) x hours worked per day (8) = 120 hours of vacation. Divide total number of vacation hours (120) by number of weeks in a year (52) = 2.308 hours of vacation earned per week. The employee started working approximately 11 weeks into 2013 (rounded up); thus, it’s assumed he’ll work 41 weeks (the remainder of the year). Hours of vacation earned per week (2.308) x weeks remaining in year (41) = 94.62 hours of vacation for the remainder of the year. HTH.

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