This article explains how Accrued Entitlement and Minimum Entitlement are calculated, and outlines how absences are deducted using the 'Standard FTE Hours Ratio' Calculation Rule.
Calculations
Accrued Entitlement:
Average FTE Ratio x FTE Entitlement x % of Accrual Enrolled
% of Accrual Enrolled:
(Days enrolled ÷ Total days in the year) × 100
Minimum Entitlement:
FTE Entitlement × FTE Ratio × % of Accrual
+
(Total Bank Holidays × FTE Ratio) × % of Accrual
Minimum Entitlement Adjustment:
(Accrued + Received Bank Holidays) − Minimum Entitlement
Standard FTE Hours Ratio:
Worked Hours for Days / FTE Hours for Days
Accrued Entitlement and Minimum Entitlement Example
Accrued Entitlement:
Average FTE Ratio (0.4) x FTE Entitlement (25) x % of Accrual Enrolled (100%) = 10
Minimum Entitlement:
Average FTE Ratio (0.4) x FTE Entitlement (25) x % of Accrual Enrolled (100%) = 10
+
Total Bank Holidays (4) x FTE Ratio (0.4) x % of Accrual Enrolled (100%) = 1.6
= 11.6
Minimum Entitlement Adjustment:
Accrued + Received Bank Holidays (14) - Minimum Entitlement (11.6) = 2.4
As the employee is receiving 2.40 more days than their Minimum Entitlement the system adds a Minimum Entitlement Adjustment to deduct 2.40 days.
Standard FTE Hours Ratio Example
With this Calculation Rule an absence would deduct as Worked Hours for Days/FTE Hours for Days.
In this example, the employee works 5.50 hours per day. When they take a one-day absence, the deduction is calculated as:
5.50/8 = 0.6875 rounded to 0.69
To ensure the absence deducts as 1 full day, the FTE Hours for Days must match the Worked Hours for Days. This way, the calculation becomes:
5.50/5.50 = 1
Another important detail to note is that this employee works 3.00 hours in the morning and 2.50 hours in the afternoon. If the employee takes a half-day absence in the afternoon (2.50 hours), the deduction is calculated as:
2.50/5.50 = 0.45
To ensure a half-day absence deducts as 0.50, the Worked Hours in the morning and afternoon must be equal — for example, 2.75 hours each. In this case, a half-day absence would be calculated as:
2.75/5.50 = 0.5.
