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.
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.
- 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:
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:
- 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.
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:
- 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.
"Standard entitlement" tiered leave template
Each payroll account has a default tiered leave template provided, called 'Standard entitlement'. This template has 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 & Hospitalisation Leave
Annual Leave
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.
Because the legislated minimum leave entitlements accrue both on a per month basis and per year basis (for the different types of leave), the anniversary in months option is used to configure the different leave tiers. 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:
- Leave allowance template = First 3 months of service
- Annual Leave = Accrues on a per pay run basis up to a maximum of 1.75 days
- Sick Leave = Accrues on a per pay run basis up to a maximum of 5 days
- Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 10 days
- Leave allowance template = 4 months of service
- Annual Leave = Accrues on a per pay run basis up to a maximum of 0.58333 days
- Sick Leave = Accrues on a per pay run basis up to a maximum of 3 days
- Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 12 days
Total leave balance as at the 4th month of employment:
- Annual Leave = 2.33333 days
- Sick Leave = 8 days
- Hospitalisation Leave = 22 days
- Leave allowance template = 5 months of service
- Annual Leave = Accrues on a per pay run basis up to a maximum of 0.58333 days
- Sick Leave = Accrues on a per pay run basis up to a maximum of 3 days
- Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 12 days
Total leave balance as at the 5th month of employment:
- Annual Leave = 2.91667 days
- Sick Leave = 11 days
- Hospitalisation Leave = 34 days
- Leave allowance template = 6 - 12 months of service
- Annual Leave = Accrues on a per pay run basis up to a maximum of 4.08333 days
- Sick Leave = 3 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 12 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
Total leave balance as at the 12th month of employment:
- Annual Leave = 7 days
- Sick Leave = 14 days
- Hospitalisation Leave = 46 days
- Leave allowance template = 2nd year of service
- Annual Leave = 8 days accrued upfront in the first pay run. Additionally, a maximum of 7 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 3rd year of service
- Annual Leave = 9 days accrued upfront in the first pay run. Additionally, a maximum of 8 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 4th year of service
- Annual Leave = 10 days accrued upfront in the first pay run. Additionally, a maximum of 9 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 5th year of service
- Annual Leave = 11 days accrued upfront in the first pay run. Additionally, a maximum of 10 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 6th year of service
- Annual Leave = 12 days accrued upfront in the first pay run. Additionally, a maximum of 11 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 7th year of service
- Annual Leave = 13 days accrued upfront in the first pay run. Additionally, a maximum of 12 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 8th year of service
- Annual Leave = 14 days accrued upfront in the first pay run. Additionally, a maximum of 13 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Leave allowance template = 9th year of service and thereafter
- Annual Leave = 14 days accrued upfront in the first pay run. Additionally, a maximum of 14 days unused leave from the previous year is automatically carried over. No further leave is accrued thereafter for the rest of the year.
- Sick Leave = 14 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 46 days accrued upfront in the first pay run. Additionally, any unused leave from the previous year is not carried over and wiped off from the employee's leave balance. No further leave accrued thereafter during this period.
"14 Days annual leave (up front)" tiered leave template
A large number of businesses actually offer employees 14 days annual leave straight way when they start employment. The Annual leave is given up front instead of accruing, which means employees will be able to apply for the Annual leave straight away if they are linked to this leave allowance template. There is no change to the Sick or Hospitalisation rules in this leave allowance template. These leave types will continue to accrue the same as the current 'Standard Entitlement' default tiered leave allowance template.
- Leave allowance template = First 3 months of service
- Annual Leave = Accrues up front up to a maximum of 14 days
- Sick Leave = Accrues on a per pay run basis up to a maximum of 5 days
- Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 10 days
- Leave allowance template = 4 months of service
- Annual Leave = Accrues up front up to a maximum of 14 days
- Sick Leave = Accrues on a per pay run basis up to a maximum of 3 days
- Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 12 days
Total leave balance as at the 4th month of employment:
- Annual Leave = 14 days
- Sick Leave = 8 days
- Hospitalisation Leave = 22 days
- Leave allowance template = 5 months of service
- Annual Leave = Accrues up front up to a maximum of 14 days
- Sick Leave = Accrues on a per pay run basis up to a maximum of 3 days
- Hospitalisation Leave = Accrues on a per pay run basis up to a maximum of 12 days
Total leave balance as at the 5th month of employment:
- Annual Leave = 14 days
- Sick Leave = 11 days
- Hospitalisation Leave = 34 days
- Leave allowance template = 6 - 12 months of service
- Annual Leave = Accrues up front up to a maximum of 14 days
- Sick Leave = 3 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
- Hospitalisation Leave = 12 days accrued upfront in the first pay run. No further leave accrued thereafter during this period.
Total leave balance as at the 12th month of employment:
- Annual Leave = 14 days
- Sick Leave = 14 days
- Hospitalisation Leave = 46 days
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