SmoothPay uses a consistent leave calculation model across all supported countries while applying the correct rules for each jurisdiction. Each region includes the minimum legal entitlements by default, and settings can be customised if staff receive additional benefits.
This article explains how anniversary balances and to-date balances work, how they are calculated, and how they appear throughout the system.
Anniversary balance
Most leave types in SmoothPay use an internal calculation model called the anniversary balance.
The anniversary balance represents the amount of leave remaining from completed years of service. It forms the base of all leave calculations and determines how much entitlement is available from prior completed years, excluding any pro-rated portion from the current year.
Calculation formula:
(Completed years of service × Accrual rate) − Leave taken to-date = Anniversary balance
How the anniversary balance behaves
It increases by the full annual accrual rate at each completed year of service.
It decreases whenever leave is used.
It does not increase each pay period. It only changes when a full year is completed or when leave is taken.
Possible states of the anniversary balance
State | Meaning |
Negative | Leave has been taken in advance or taken from the current year before the entitlement anniversary. Interpretation varies by jurisdiction. |
Zero | No entitlement remaining from completed years. |
Positive | Leave remaining from completed years of service. |
Last anniversary date
Each leave type has a last anniversary date, which is the date the next full entitlement will be added automatically. This normally aligns with the employee’s start date but can differ depending on local rules or custom configurations.
When a pay includes any period crossing twelve months from the last anniversary date, SmoothPay automatically:
Adds the new annual entitlement
Updates the last anniversary date
To-date balance
Some leave types also calculate a to-date balance. This represents the total leave available, including:
The anniversary balance, and
A pro-rated accrual for the current incomplete year
Calculation formula
Anniversary balance + Pro-rated portion = To-date balance
The pro-rated portion is calculated automatically based on the number of days between the last anniversary date and the current period end:
(Accrual rate ÷ 365) × Days since last anniversary = Pro-rated portion
If the anniversary balance and last anniversary date are correct, the to-date balance will automatically remain accurate.
When to-date balances apply
Not all leave types use a to-date balance. Some jurisdictions only recognise the anniversary balance as the legal entitlement. Others use to-date balances for valuation or liability purposes. SmoothPay adjusts automatically based on the leave classification and jurisdiction settings.
Accrual methods
Different leave types may use different accrual methods. SmoothPay supports:
Hours-based accrual
Days-based accrual
Weeks-based accrual
Percentage per pay accrual
Anniversary-only accrual
Continuous to-date accrual
The calculation behaviour depends on the classification and jurisdiction of each leave type, but the anniversary and to-date principles apply to all methods except percentage per pay, which accrues purely per-transaction.
Viewing leave balances
Leave balances are visible in multiple locations:
1. Staff screen
Go to the Staff screen
Select the employee
Select the Leave and Entitlement tabs
Select the leave type
You will see:
The anniversary balance
The to-date balance (if applicable)
2. Payslip
Balances can appear on payslips if the Show balance on payslip option is enabled for the leave code.
3. Leave reports
Reports provide leave balance summaries for individual employees or for the entire organisation. These reports are used for auditing, compliance and financial review.