Configuring Accrual Policies


Certain absence types, such as ‘Paid Vacation’, are subject to defined numbers of total leave days (accruals). This article explains how you can configure different accrual policies for these absence types.


Creating and Configuring Accrual Policies

Go to Settings > Absences and select the absence type for which you wish to create an accrual policy. Personio allows you to create a number of different accrual policies for each absence type to reflect different leave entitlements.

Click on New Absence Policy to open a configuration assistant, which will take you through the process in only three steps. 

Step 1: Basic Information


Policy name

Enter the name for your new accrual policy (e.g. 28 days).

Number of days granted 

The number of days in the employee’s leave entitlement.

If you have activated the Prorate vacation option in the attendance model, the working days defined for the selected attendance schedule are automatically transferred to the accrual calculation. Click here for further information about configuring paid vacations for part-time employees.

Grant entitlement every

Choose when you would like the accrual policy to restart each year.

Entitlement granted at

Select whether you would like the accrual to be started at the beginning of the year or with effect from the hire date.

Enable waiting time?

This option is only shown if Year is selected for the "Grant entitlement every" option.

This allows you to prorate leave entitlement calculations for the first six months of employment (= waiting period).

Click here to find out how leave entitlements are calculated during the waiting period.


Step 2: Prorated Calculation


In the second step, you define whether the leave entitlement is to be calculated on a prorated basis at the beginning or end of employment.

Beginning of employment Select how entitlements are to be calculated when the employee is first hired. The available options are Daily prorated, Monthly prorated, No proration. A brief explanation of each option is provided below the selection field.
End of employment Select how entitlements are to be calculated when the employee leaves. Choose whether the employee should receive their full entitlement if they leave the company in the first half of the year (i.e. Termination date shouldn't reduce entitlements) or if their entitlement is to be prorated (on a monthly basis). If the employee leaves the company in the second half of the year after more than six months of employment, they always receive their full entitlement.


Step 3: Extra Days


In the final step, you define whether leave entitlements are to be increased depending on employees’ length of service with the company. Select Yes to enable the function, and then enter the number of extra days per year of employment from the hire date. You have the option to enter any number of policies here.

Extra days of leave accrue on each anniversary of an employee’s hire date by default. If you create an extra days policy that stipulates Add 1 extra day(s) 1 year(s) after the hire date, an employee who joined the company on 01.10.2018 would be entitled to one additional day of leave exactly one year later, i.e. from 01.10.2019.

The Grant extra days with the start of next entitlement period checkbox allows you to define the start date of the next entitlement period as the reference date on which the entitlement is to accrue instead of the hire date. In the example shown, the employee would receive an additional leave day from 01.01.2020.

Refer to the article on Best Practices: Accrual Policies for examples of commonly used settings.


Archiving and Deleting Accrual Policies

Once you assign an accrual policy to employees, you can click on the policy name in Settings > Absences to find out how many employees are currently subject to the relevant policy.

If you wish to prevent an accrual policy from being assigned to any employees or serving as the basis for any leave entitlements, you can delete the policy in the settings under Absence > Paid vacation.


Please note that accrual policies cannot be deleted as long as they are assigned to one or more employees. If you still wish to remove the policy as an option for future selection, you can archive it.


Archived accrual policies are no longer shown as an available option and cannot be assigned to employees. Archived policies can be found in Settings > Absences > Paid vacation > Accruals > Archive. The archive also shows details on when the accrual was archived and by whom, and how many employees the accrual is still assigned to.


Please note that archived accrual policies cannot be restored. If you wish to restore an archived accrual policy, you need to recreate it using the New Absence Policy option.


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