ACCRUED LEAVE
Accrued Leave
Accrued leave refers to the accumulation of paid time off or vacation days that an employee earns over a specific period according to the policies set by a companys human resources department. This leave accrual system is a common practice in many organizations. It is designed to grant employees the opportunity to take time off while ensuring that they are compensated during their absence.
In many companies, leave is accrued on a monthly basis. While some companies may choose to calculate leave accrual on a quarterly or half-yearly basis instead of monthly. The accrued leave balance increases as employees continue their service with the company. The accrued leave is often subject to a maximum limit, and any excess may not be carried over into the next accrual period.