Tiered Leave Template

Having tiered leave templates enables you to set up leave accruals for employees whose leave entitlement adjusts at a point in time during their period of employment. As a result, you do not need to manually change employee's accrual amounts once they have reached a specific date. Rather, based on your setup of the tiered leave template, the employee's leave accrual settings will automatically update upon the employee's configured anniversary in the pay run.

Tiered leave allowance templates can be found on the Payroll Settings > Tiered Leave Templates page. In order to set up a tiered leave template you must first have the relevant leave allowance templates created so that you can assign them to the tier. 

Navigating the Tiered Leave Template functions

To add a new tiered leave template, click on the "Add" button located on the right hand side of the screen. Then complete the following:

  • Name: This will be the name of the tiered leave template that appears when setting up employees (via the employee wizard and import file) and also appears in some reports. As such, if you plan on setting up a few templates ensure they are named in a way that can be differentiated easily.
  • Leave Template Tiers based on: Click on the drop down menu and select either anniversary date in years or months. Specific examples on setting up tiers based on each option and the reasons why you would choose a particular option is provided further below.
  • You require at least one tier. Click "here" to add a tier: Click on "here" to start building the tiers based on each leave anniversary. 
  • To add additional tiers, click on "Add additional tier".
  • Then click on "Save".

When building the tiers, take note of the following:

  • Leaving the first "From" field blank denotes that the template will apply from the commencement of the employee's leave year start date. The leave year start date can be either the employee's start date or any other specific date as configured by you. The leave year start date can be configured at a business level via the Leave Categories screen but also at an individual level via the employee's Leave Allowances screen. 
  • Leaving the last "To" field blank denotes that the same template will continue to apply from the defined anniversary period and thereafter. 
  • The value entered in the "From" field cannot be the same as the value entered in the "To" field from the tier above. Doing this will case an error (screenshot example below) and you will not be able to save the template. 

Screen_Shot_2020-04-07_at_12.55.27_pm.png

  • To delete a tier from the template, hover your mouse over the tier details so that the "x" icon appears. Click on the "x" to delete the tier: 

Screen_Shot_2020-04-07_at_2.44.53_pm.png

Setting up a tiered leave template in months

You would use the anniversary in months option where an employee's leave entitlement changes upon 'x' months service with the employer or if there is a combination of 'x' months and 'x' years.

We will run through an example scenario to describe how the tiers should be set up. 

A business provides "Anniversary Leave" to employees as a retention strategy. The leave entitlement is as follows:

  • After first 3 months =  accrue 1 day of leave
  • After 6 months = accrue an extra 2 days of leave
  • After 12 months = accrue an extra 3 days of leave
  • Every year thereafter = accrue an extra 4 days of leave

To automate the accrual for this leave, you would set up the tiers as follows:

Screen_Shot_2020-04-07_at_12.45.04_pm.png

  • The first "From" tier is intentionally blank and denotes that it applies from the commencement of the employee's leave year start date. 
  • The first tier will automate the accrual of leave so that (based on a monthly pay run) the employee accrues 0.3333 days per pay run and on the 3rd month the employee has an Anniversary Leave balance of 1 day.
  • Between the 4th and 6th pay run, the employee will automatically accrue 0.6667 days per pay run so that on the 6th month the employee now has an Anniversary Leave balance of 3 days. 
  • Between the 7th and 12th pay run, the employee will automatically accrue 0.5 days per pay run so that on the 12th month the employee then has an Anniversary Leave balance of 6 days. 
  • The last "To" tier is intentionally blank and denotes that the same leave allowance template can be applied thereafter. As such, between the 13th and 24th pay run, the employee will automatically accrue 0.3333 days per pay run so that on the 24th month the employee then has an Anniversary Leave balance of 10 days. And so on...

The explanation above describes an accrual per pay run scenario. Leave can also be configured to accrue in advance. This is discussed in more detail in the Leave Allowance Template article.

Setting up a tiered leave template in years

You would use the anniversary in year option where an employee's leave entitlement changes upon 'x' years  service with the employer. A prime example of this is the legislated Annual Leave entitlement in Singapore.

We will run through an example scenario to describe how the tiers should be set up. 

A business provides "Anniversary Leave" to employees as a retention strategy. The leave entitlement is as follows:

  • 1 yr of service =  1 day of leave
  • 2nd yr of service = an extra 2 days of leave
  • 3rd yr of service = an extra 3 days of leave
  • Every year thereafter = an extra 4 days of leave

To automate the accrual for this leave, you would set up the tiers as follows:

Screen_Shot_2020-04-07_at_5.13.50_pm.png

  • You will notice the tiers work differently for years, in comparison to months. The first "To" tier value is '0' if it is to apply for the first year. If the first tier was to capture the first 2 years then the "To" value would be 1.  
  • The first tier will automate the accrual of leave so that (based on a monthly pay run) the employee accrues 0.83333 days per pay run so that at the end of the 1st year the employee has an Anniversary Leave balance of 1 day.
  • Between the first and last pay run of the 2nd year, the employee will automatically accrue 0.16667 days per pay run so that at the end of the 2nd year the employee now has an Anniversary Leave balance of 3 days. 
  • Between the first and last pay run of the 3rd year, the employee will automatically accrue 0.25 days per pay run so that at the end of the 3rd year the employee now has an Anniversary Leave balance of 6 days. 
  • The last "To" tier is intentionally blank and denotes that the same leave allowance template will be applied thereafter. As such, between the first and last pay run of the 4th year, the employee will automatically accrue 0.3333 days per pay run so that at the end of the 4th year the employee has an Anniversary Leave balance of 10 days. And so on...

The explanation above describes an accrual per pay run scenario. Leave can also be configured to accrue in advance. This is discussed in more detail in the Leave Allowance Template article.

System default tiered leave templates 

Each payroll account has a set of default tiered leave templates provided, called:

  • Standard entitlement (FT);
  • Standard entitlement (FT up front);
  • Standard entitlement (PT);
  • Standard entitlement (PT up front)

These templates have been designed in accordance with the legislated leave entitlements for Annual Leave, Sick Leave & Hospitalisation Leave, in terms of when the leave entitlement applies to employees, as follows:

Sick Leave - Full time 

Number of year of service completed Paid sick leave days Paid hospitalisation leave
First 2 years of service 14 46
2 to 4 years of service 18 42
Thereafter 22 38

Sick Leave - Part time 

Number of year of service completed Paid sick leave days Paid hospitalisation leave
First 2 years of service 10 0
2 to 4 years of service 13 0
Thereafter 15 0

NB: Part time employee's are not entitled to accrue hospitalisation leave

Annual Leave - Full time

Year of service Days of leave
First 2 years of service 8
2 to 4 years of service 12
Thereafter 16

Annual Leave - Part time

Year of service Days of leave
First 2 years of service 6
2 to 4 years of service 8
Thereafter 11


Assigning employees to a tiered leave template is optional, however we suggest you use this template if your staff accrue leave in accordance with the legislated minimum entitlements. If you have provided your staff leave entitlements that are above the minimum, you can create your own tiered leave templates and leave allowance templates.

Additionally, each tier is linked to the default system leave allowance templates provided. An explanation of the leave accrued for each tier is as follows:

Standard entitlement (FT)  

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Tier 1: First 2 years (FT)

  • Leave allowance template = First 2 years of service (FT)
  • Annual Leave = Accrues on a per pay run basis up to a maximum of 8 days
  • Sick Leave = Accrues on a per pay run basis up to a maximum of 14 days
  • Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 46 days

Tier 2: 2 to 4 years (FT)

  • Leave allowance template = 2 to 4 years of service (FT)
  • Annual Leave = Accrues on a per pay run basis up to a maximum of 12 days
  • Sick Leave = Accrues on a per pay run basis up to a maximum of 18 days
  • Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 42 days

Tier 3: Thereafter (FT)

  • Leave allowance template = Thereafter (FT)
  • Annual Leave = Accrues on a per pay run basis up to a maximum of 16 days
  • Sick Leave = Accrues on a per pay run basis up to a maximum of 22 days
  • Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 38 days

Standard entitlement (FT up front)

2021-07-22_13-27-54.jpg

  • Tier 1: First 2 years (FT up front)

    • Leave allowance template = First 2 years of service (FT up front)
    • Annual leave = 8 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Sick Leave = 14 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Hospitalisation Leave = 46 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.

    Tier 2: 2 to 4 years (FT up front)

    • Leave allowance template = 2 to 4 years of service (FT up front)
    • Annual leave = 12 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Sick Leave = 18 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Hospitalisation Leave = 42 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.

    Tier 3: Thereafter (FT up front)

    • Leave allowance template = Thereafter (FT up front)
    • Annual leave = 16 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Sick Leave = 22 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Hospitalisation Leave = 38 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.

Standard entitlement (PT)

2021-07-22_13-31-30.jpg

Tier 1: First 2 years (PT)

  • Leave allowance template = First 2 years of service (PT)
  • Annual Leave = Accrues on a per pay run basis up to a maximum of 6 days
  • Sick Leave = Accrues on a per pay run basis up to a maximum of 10 days
  • Hospitalisation Leave = No accrual for hospitalisation leave

Tier 2: 2 to 4 years (PT)

  • Leave allowance template = 2 to 4 years of service (PT)
  • Annual Leave = Accrues on a per pay run basis up to a maximum of 8 days
  • Sick Leave = Accrues on a per pay run basis up to a maximum of 13 days
  • Hospitalisation Leave = No accrual for hospitalisation leave

Tier 3: Thereafter (PT)

  • Leave allowance template = Thereafter (PT)
  • Annual Leave = Accrues on a per pay run basis up to a maximum of 11 days
  • Sick Leave = Accrues on a per pay run basis up to a maximum of 15 days
  • Hospitalisation Leave = No accrual for hospitalisation leave

Standard entitlement (PT up front)

2021-07-22_13-39-07.jpg

  • Tier 1: First 2 years (PT up front)

    • Leave allowance template = First 2 years of service (PT up front)
    • Annual leave = 6 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Sick Leave = 10 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Hospitalisation Leave = No accruals for hospitalisation leave.
    • No further leave accrued thereafter during this period.

    Tier 2: 2 to 4 years (PT up front)

    • Leave allowance template = 2 to 4 years of service (PT up front)
    • Annual leave = 8 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Sick Leave = 13 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Hospitalisation Leave = No accruals for hospitalisation leave.
    • No further leave accrued thereafter during this period.

    Tier 3: Thereafter (PT up front)

    • Leave allowance template = Thereafter (PT up front)
    • Annual leave = 11 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Sick Leave = 15 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
    • Hospitalisation Leave = No accruals for hospitalisation leave.
    • No further leave accrued thereafter during this period.

If you have any feedback or questions, please send us an email at support@yourpayroll.io.

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