Accrued Leave

Every company allocates a definite number of leaves per annual quota. How many leaves that to be accrued( earned) in a Month/ Quarterly/ Half-yearly of an employee is up to the company HR policy. That carry forwarded leave is called “Accrued leave”. It is the leave that an employee accrues during the year (within the current holiday pay year) is called Accrued, accruing, or leave accrual.

Thus it is the amount of vacation time that an employee has earned as per a company’s employee benefits policy, but which has not yet been used or paid. This is a liability for the employer. For example, if a  company allocates 12 leaves per year annual then 1 leave is accrued every month.

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