How the System Calculates Pro-Rated Leave on Engagement and Termination
This feature is available on all Deel Local Payroll powered by payspace payroll editions
Should you want employees leave accrual to pro rata for new engagements or terminated employees you will need to activate the below option on your relevant leave scheme.
Navigate > Config > Human Resources > Leave Scheme Parameters
Edit the relevant scheme you want to activate the proration for
Once activated the system will use the below calculation when applicable.
(Full month accrual / Actual days in month) X actual calendar termination day
Example
Employee was terminated on 2025/07/16
Normal monthly accrual = 1.75 days
Prorated accrual calculation
(1.75 accrual / 31 calendar days in month) X 16th as termination day in month
Result = 0.90
Pro rata Leave accrual calculation is not based on your company proration option selected under calculation settings
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