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Simple, effective, customizable payroll, leave and expense management for SMEs

Leave carry over

Keep rollin' rollin' rollin'...

by Usamah Jamaludin

It depends. Some companies do provide you with ample time-off, and most importantly - the time to actually take that time-off!

But there can be cases where it's hard to take that time-off, especially during crunch times. If that's the case - no one wants that time-off allocation to go to waste. Pretty sure no company wants to see their employees burn out either.

Usually, this is done by having a carry-over mechanism when it comes to allocating your leave / time-off entitlements for the coming year. To be honest this is nothing new, and it's implemented in many organizations - and now you can configure it on Kitikiti HRM!

Configure it

Usually, you'd want to roll the 'main' leave type(s) only. Sometimes it's known as 'Annual Leave', sometimes it's known as 'PTO', but in short it's basically that paid amount of time-off that an employee can take within a year's employment to - well - not work.

This means not all leave types should be carried over. For example, a Maternity Leave entitlement is never carried over into the next, accumulating more and more over the years.

So how do you set a leave type to allow 'carryable' entitlements? Go to Administration > Leave Configuration > Leave Types and select the leave type you want to enable carry over for.

Leave Type navigation

You will see the checkbox 'Allow carry over'. Upon clicking on it, you can configure

  • how many hours to carry over to coming year?
  • when would the carry-over hours expire in the coming year?

Carry over configuration

As per the above configuration, assuming you still have more than 40 hours of Annual Leave by the end of the year, you will carry over a maximum of 40 hours as a carry-over entitlement into the next year. This special carry over entitlement expires by 31st of March the next year.

If your balance is lower that 40 hours, it will just take that balance instead.

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Roll it

Ok so even though you can always roll like a boss, but we've yet to expose the ability to roll your leave entitlement balances as carry overs automatically. Internally we will roll it at the end of each year.

Rest assured by the time you login into Kitikiti HRM each new year - those carry over hours will be there waiting for you to spend on that lovely trip to Cancun.

Here's an example of a carry-over entitlement, which you can inspect by going to Employee Profile > Leave Entitlements.

Leave entitlements

In the above example, we have 120 hours of Annual Leave for 2019. Assuming that we have our carry over set for a max of 40 hours, we should be getting a 40-hour carry over entitlement in 2020, with the usual 120 hours of Annual Leave for 2020, for a total of 160 hours in 2020.

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Yearly vs One-off recurring entitlements

If you look closely at the previous screenshot, you will see a new field - Recurrence type.

To build the carry over feature, we introduced the ability to differentiate entitlements into two, based on the recurrence type:

  • Yearly
  • One-off

You can see this upon inspecting an entitlement, via Employee Profile > Leave Entitlements.

Recurrence type

In case you're unsure, there's always that little friendly question mark icon to guide you.

Recurrence type explanation

A yearly entitlement is always replicated again and again each new year. This is how you get your 120 hours of time off consistently each year.

A one-off entitlement is only created for a particular year, and it's not replicated whenever we roll over stuff at the end of each year. There's many reasons why we want a one-off entitlement, such as:

  • to carry over hours specifically from the previous year
  • to add more hours into the current year due to replacement leave (you made a deal with your boss to work on Labour day, in exchange for a sweet, additional 40-hour time off)

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Leave accrual

Not our favorite topic - we think employees should freely decide when and how much to spend out of their yearly entitlements - but - if this is your HR policy, Kitikiti HRM can easily be configured to enable leave accruals.

Accrued leave is basically the idea that you don't get all that 120 hours of leave entitlements at the beginning of the year. Rather, as you work through the year, you earn more and more chunks of leave entitlements, totalling up to 120 hours at the end of the year. For example, this could be a pretty common leave earning schedule:

Hours Valid from Valid until Total hours earned
10 1st January 31st December 10
10 1st February 31st December 20
10 1st March 31st December 30
10 1st April 31st December 40
10 1st May 31st December 50
10 1st June 31st December 60
10 1st July 31st December 70
10 1st August 31st December 80
10 1st September 31st December 90
10 1st October 31st December 100
10 1st November 31st December 110
10 1st December 31st December 120

And this is how it looks like, if you set it up on Kitikiti HRM:

Accrued entitlements

This means for you to be able to take that 120 hours = 15 days worth of leave - that's only gonna happen in December. Which is not too bad.

But probably still can't beat those 15 days in summer!

Beach during summer

However, we're pretty sure your HR folks, (or you, yes you that HR admin who's reading this) - they're pretty cool, so either they don't enforce any leave accrual, or they'll gladly give you some advance leave so that you can go for that dream vacation of yours!

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Long-service / senior employee leave benefits

Not all leave benefits are created equal (sorry, can't help it).

Usually, a new, entry-level employee gets the most basic of benefits, and they (should!) get better as go up the seniority ladder. Being a manager for example, may accord you more time-off compared to your subordinates (though we can't guarantee if you'd be able to take them all!).

How do you model this in Kitikiti HRM? Simple.

First, the default number of entitled hours, for a given leave type, should be set to the lowest as determined by the company's leave benefits policy. It's easier to start with the minimum and add more entitlements later, rather than the other way around.

Default entitlement

Plus, since most organizations have the most openings at the entry level, it makes sense to use such default.

So what if you have a manager being hired into the organization - or better yet - someone being promoted up as a manager?


All you need to do is to go to the manager's Employee Profile > Leave Entitlements, and create a new Leave Entitlement entry for that year.

Assuming a manager gets an extra 32 hours of time-off, you only need to create a yearly-recurring leave entitlement once, and in subsequent years the manager will always have that entitlement provisioned come each new year.

Extra hours

Another special case of leave benefits is the case of long-service employees. Usually, after a certain number of years (e.g 5, 10 or 20 years of service), the company would like thank an employee for his / her long service by giving a one-time special leave entitlement.

For example, a person who has worked 10 years in the same company would be given an additional 80 hours / 10 days off on his / her 10th year of service.

In Kitikiti HRM, all you need to do is to go the the Employee Profile > Leave Entitlements, and create a new one-off Leave Entitlement entry for that year, like so:

Long service leave award

Since the Leave Entitlement entry is created with Recurrence type = One-off, this special entry is only applicable for the year it's created in, and will not be replicated into next year.

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Sign up for a free account on Kitikiti HRM!

We will be more than happy to assist you with your company's setup, and we'll also throw in 2 months of free usage!

No credit card required for signup, and no annoying demo appointment to be set. You get to use it immediately upon signup.

Try out Kitikiti HRM at your own pace - and you can always contact us via the support chat widget.

Even if you decide not to use payroll - the leave and expense modules are FREE to use, regardless of the your company size.

Finally, if you have 10 or less employees on payroll - guess what - everything is FREE! We want to grow with you!

Free HRM software subscription for the whole of 2019!

Yup, Santa is back!

by Usamah Jamaludin

Pay slip customization

What should be shown on the pay slip? You decide!

by Usamah Jamaludin