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Dec23

Pro-Rating Vacation

My question relates to pro-rating vacation for a new hire. I have an employee who started 02/29/2016 and works 40 hours/week. How many hours of vacation are they entitled to in 2017? Based on my math, I calculated 68 hours. Is this correct? Please detail your calculation work. On January 1st, employees receive their vacation allotment. Once a new hire reaches their one-year anniversary, they will receive 2 weeks the following year. Thank you for your help!!

Since the employee was hired in February he’s not entitled to the full 2 vacation weeks. So, he will get a prorated amount.

The employee’s anniversary date is February 29, 2017. We need to figure out how much vacation time the employee is entitled to for the remainder of 2017 (43 weeks).

Two weeks vacation per year calculates to 80 hours of vacation time (2 weeks x 40 hours/week = 80 hours of vacation time). Divide the total number of vacation hours (80) by number of weeks in a year (52) = 1.538 hours of vacation earned per week.

Hours of vacation earned per week (1.538) x weeks of vacation entitlement (43) = 66.134 hours of vacation. So, the employee would be entitled to 66.134 hours of vacation.

Our numbers were close so it may just be we rounded differently. Make sure to adopt a rounding practice that’s consistently applied.

HTH!

This entry was posted on Friday, December 23rd, 2016 at 7:01 pm and is filed under
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