Time Off Monthly Proration: How Does It Work?

Last Updated: June 6, 2025

Overview:

This guide aims to explain the time off proration logic in Omni and how it works. Specifically, this article will focus on explaining how monthly proration logic works with different proration settings. We have included examples to best illustrate how the system will behave depending on different settings.

Proration rules:

• Proration in the first period determines whether the entitled amount is granted fully or partially in the first period when the policy is first assigned to a user.
• Proration in the last period determines whether the entitled amount is granted fully or partially in the last period when the policy is removed from a user
• Monthly prorated in the first or last period means the user only earns time off if he works for the full month. No time off is earned for partial month
  
  

Example 1: 16 days should be awarded on January 1, and monthly proration is in the first period. 

If a new hire joins on 15 January 2025, the accrual will start from the nearest first day of the next month; 1 February 2025. Since the new hire did not work for a full month in January, the accrual will only take into account completed months of service.

To calculate the accrual of leave in 2025:

• Number of days in period = Days between 01/02/2025 - 31/12/2025 = 334
• Number of days in policy year = Days between 01/01/2025 - 31/12/2025 = 365
• Amount granted= 334/365 x 16 = 14.64 days

Example 2: 16 days should be awarded on January 1, and monthly proration is in the last period. 

If an employee last working day is on 16 March 2025, the accrual will calculate from the nearest last day of the previous month; 28 February 2025. Since the employee did not work for a full month in March, the accrual will only take into account completed months of service.

To calculate the accrual of leave in 2025:

• Number of days in period = Days between 01/01/2025 - 28/02/2025 = 59
• Number of days in policy year = Days between 01/01/2025 - 31/12/2025 = 365
• Amount granted= 59/365 x 16 = 2.59 days

Example 3: 16 days should be awarded on January 1, and monthly proration is in both periods.

If a new hire joins on 15 June 2024, but leaves on 15 June 2025, the accrual will be calculated as follows:

To calculate the accrual of leave in 2024:

• Number of days in period = Days between 01/07/2024 - 31/12/2024 = 184
• Number of days in policy year = Days between 01/01/2024 - 31/12/2024 = 366 (2024 is a leap year)
• Amount granted= 184/366 x 16 = 8.04 days

To calculate the accrual of leave in 2025:

• Number of days in period = Days between 01/01/2025 - 31/05/2025 = 151
• Number of days in policy year = Days between 01/01/2025 - 31/12/2025 = 365
• Amount granted= 151/365 x 16 = 6.62 days

Example 4: 16 days should be awarded on January 1, and monthly proration is in both periods.

When an employee joins and leaves in the same period, and both first & last period are prorated monthly, the system will take the last period proration as precedence. 

If a new hire joins on 15 January 2025, but leaves on 15 June 2025, the accrual will be calculated as follows:

To calculate the accrual of leave in 2025:

• Number of days in period = Days between 15/01/2025 - 31/05/2025 = 137
• Number of days in policy year = Days between 01/01/2025 - 31/12/2025 = 365
• Amount granted= 137/365 x 16 = 6.01 days

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