Leave Credit

Pocket HRMS offers a comprehensive leave module that allows you to take care of all your leave management needs and customize it for the needs of your company. Here is a simple guide that walks you through the various functions of the module and how you can utilize Pocket HRMS to streamline your leave management process.

Leave Credit

The leave credit feature can be used to credit a particular type of leaves to the employees and set various parameters for it as described below.

First you need to log into the Pocket HRMS cloud portal with admin credentials. Now, you can click on the โ€˜Settingโ€™ menu towards the bottom of the left-hand side bar.

That will take you to the screen below, select the โ€˜Leaveโ€™ tab from the top and then โ€˜Leave Creditโ€™ from the subtab as shown below.

This takes you to โ€˜Leave Credit Monthlyโ€™ window, you can do various settings described in detail below.

  • Click on the โ€˜Monthlyโ€™ radio button to set criteria for monthly leave credits.

  • From the โ€˜Categoryโ€™ drop-down menu, you should select the employee category for which leave credit criteria will apply. That way admin can ensure that the setting you do will be applicable to only for a selected employee category while existing settings for other employee categories stay unaffected.

  • From โ€˜Leaveโ€™ drop down menu select the type of leave for which you want to set the leave credit criteria for. Here, you can set different parameters for various types of leaves you have configured in the system. That way you can ensure differentiation in rules for particular type of leave.

  • For example, rules for crediting casual leave will differ from crediting sick leave.

  • From option โ€˜aโ€™ drop-down select criteria based on which the leaves employees will get the leave credit such as their joining date, birth date, anniversaries and much more.

  • In option โ€˜bโ€™, fill the sum of opening leaves and leave credits in the text box provided. This setting will ensure that the monthly leave credit and opening does not exceed this limit.

This feature allows you to limit maximum leave balance which is beneficial in many ways. It controls liability that company has for unused leaves, donโ€™t allow employees to take unreasonable amount of leaves at the same time so you can avoid staffing shortage. It also encourages employees to take regular breaks which helps in building healthy work-life balance.

  • In option โ€˜cโ€™, enter the number of leaves to be credited every month.

The option allows you to establish a standardized leave policy across the organization. This ensures consistency and transparency in leave entitlements for all employees.

  • In option โ€˜dโ€™ select the rounding rule for leave credit, so the system will do the rounding accordingly. You can also select option โ€˜NILโ€™ if you don't want to use rounding.

Rounding rules ensure that leave credits are calculated consistently, and accurately for all employees. It also avoids discrepancies that might arise due to variations in leave accrual calculations. Employees gets clear understanding of their available leave balances. The consistent leave data generated by the system supports better reporting and analytics.

  • In option โ€˜eโ€™ you can enter the formula or change it by clicking the โ€˜Leave Credit Formulaโ€™ button set the formula and click on โ€˜Save changesโ€™ button so the system will calculate monthly leave credit based on this formula.

The ability to set up a leave credit formula allows your company to customize leave accrual calculations to companyโ€™s specific needs and policies. This flexibility ensures that the system works in alignment with your organization's unique structure and requirements.

If your company has complex leave accrual rules based on factors like tenure, job role, or other variables, the formula feature can handle these calculations accurately reducing the time and effort required for manual calculations

Plus, if policies change over time, updating the formula is more efficient than modifying individual leave accrual records for each employee.

In option โ€˜fโ€™ select the checkbox if you donโ€™t want to credit leave for the employee's first month of joining. When the checkbox is checked the system will exempt the employees for their first month.

Often, new employees are placed on a probationary period during their initial months. Exempting leave credits for the first month acknowledges this period and prevents unnecessary accruals before an employee's status is confirmed. The checkbox automates this process, saving HR time and reducing errors also simplifying tracking and calculations.

  • In option โ€˜gโ€™ you can select the text box to apply pro rata so the system can credit the leaves by pro rata.

Pro rata calculations ensure that leave credits are proportionate to an employee's actual service duration. Useful for employees joining or leaving the company in the middle of the year.

By applying pro rata calculations, the system accurately reflects the leave entitlement of employees based on the exact time they have been with the company. This prevents overestimating or underestimating leave balances.

  • In option โ€˜hโ€™ check the box if you want to set different criteria for employees who are joining the company in the middle of month.

After checking the box, you will get an option โ€˜Mid Joining Daysโ€™ to set a value to define mid joining as greater than equal to the set number of days. You can set the number of leave to be credited for mid joining employees in the field against โ€˜Leave Credit Days for Mid Joiningโ€™.

Enabling the option to set different criteria for employees who join the company in the middle of the month provides them with an appropriate number of leave days based on their actual working days in the month. This option allows you to customize leave benefits to your company's unique requirements. The automated calculation gives you correct calculations and avoids possible disputes and confusion over the leave credit.

  • In option โ€˜iโ€™, you can enter the formula for leave credit eligibility in the given field or set formula by clicking on the โ€œLeave Credit Eligibilityโ€™ button. Based on this formula the system will decide if the employee is eligible to receive the leave credit.

With the ability to define a formula you can customize leave credit eligibility based on various factors. If company policies change, the formula can be adjusted accordingly providing you additional flexibility. It also ensures precise leave balance projections, enabling better workforce planning and resource management.

  • In option โ€˜jโ€™ can be used to set what would be the cut off value.

Setting a cut-off value can provide your company with more control and flexibility over how leave credits are allocated to employees. So, the employees who meet or exceed the specified criteria will receive the allocated leave credits, while those who fall below the cut-off value may receive a different amount or no credits.

Allocating leave credits to employees who meet the criteria also reduces the overall leave-related financial burden.

  • Click on the โ€˜Saveโ€™ button so the system will store the criteria you chose and use it to credit leaves for your employees.

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