Sample vacation accrual methods
Vacation accrual is usually based on some element of seniority. Most organizations reward long-term employees with additional vacation days. Vacation accrual systems based on years of service do not address new employees who are hired after the beginning of the year. One way to provide vacation to new employees during the year of hire is to assign a schedule of vacation days based on new employees' month of hire. Another method is monthly accrual of vacation based upon crediting employees with one day of vacation for each month of active employment. As employees gain seniority they earn more days of vacation per month and are eligible to accrue a greater number of vacation days each year. Part-time employees may be eligible for vacation accrual on a pro-rata basis based upon their regular workweek.
An organization can modify vacation accruals to reflect additional credit for any factor it wants, as long as it is not discriminatory
Seniority accrual method - sample 1
Employees who have completed one year of service and who work a 5-day, 40-hour week, are entitled to vacation as follows:
Vacation entitlement in week/hours
After 1 year 1 week/40 hours
After 2 years 1 week plus 1 day/48 hours
After 3 years 1 week plus 2 days/56 hours
After 4 years 1 week plus 3 days/64 hours
After 5 years 2 weeks/80 hours
After 6 years 2 weeks/80 hours
After 7 years 2 weeks/80 hours
After 8 years 2 weeks plus 1 day/88 hours
After 9 years 2 weeks plus 2 days/96 hours
After 10 years 3 weeks/120 hours
After 11 years 3 weeks/120 hours
After 12 years 3 weeks/120 hours
After 13 years 3 weeks/120 hours
After 14 years 3 weeks/120 hours
After 15 years 3 weeks/120 hours
After 16 years 3 weeks plus 1 day/128 hours
After 17 years 3 weeks plus 1 day/128 hours
After 18 years 3 weeks plus 1 day/128 hours
After 19 years 3 weeks plus 2 days/136 hours
After 20 years 4 weeks/160 hours
After 21 years 4 weeks/160 hours
After 22 years 4 weeks/160 hours
After 23 years 4 weeks/160 hours
After 24 years 4 weeks/160 hours
After 25 years 5 weeks/200 hours
Seniority accrual method - sample 2
Service Vacation
6 months 1 week
1 year 2 weeks
2 years 2 weeks, 1 day
3 years 2 weeks, 2 days
4 years 2 weeks, 3 days
5 years 2 weeks, 4 days
6-10 years 3 weeks
11 years 3 weeks, 1 day
12 years 3 weeks, 2 days
13 years 3 weeks, 3 days
14 years 3 weeks, 4 days
15-24 years 4 weeks
25 or more years 5 weeks
New employees' month of hire accrual method
Monthly accrual method
1-5 years of service: an employee earns 1 day per month up to a maximum of 10 day per year.
6-15 years of service: an employee earns 1.5 days per month up to a maximum of 15 days per year
16-25 years of service: an employee earn 2 days per month up to a maximum of 20 days per year.
26 or more years of service: an employee earns 2.5 days per month up to a maximum of 25 days per year.
Part-time employees' accrual
Part-time employees may be eligible for vacation accrual on a pro-rata basis based upon their regular workweek. Thus, under the accrual schedule above, a regular part-time employee (in the first through fifth year of service) who regularly works 20 hours per week could earn one vacation day per month up to a maximum of 10 days. One day of vacation would equal four hours (20 hours per week divided by five days in the week) and the maximum vacation time that could be earned would be 40 hours (10 days multiplied by four hours).
<p>Vacation accrual is usually based on some element of seniority. Most organizations reward long-term employees with additional vacation days.</p>
Sample vacation accrual methods
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