Accrued Leave

Accrued Leave is the amount of paid leave or time off that an employee earns over a specific period of employment according to the organization's leave policy. Instead of receiving the entire annual leave entitlement at once, employees accumulate leave progressively based on factors such as days worked, months of service, employment status, or company rules. Accrued leave may include annual leave, earned leave, paid time off (PTO), or other eligible leave types. Human Resource Management Systems (HRMS) automatically calculate leave accruals, update leave balances, enforce carry-forward rules, manage leave encashment, and ensure compliance with company policies and applicable labour regulations. Accurate accrued leave management helps organizations maintain payroll accuracy, improve workforce planning, and provide employees with transparent access to their leave balances.
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