How Do You Calculate a Prorated Vacation?

How Do You Calculate a Prorated Vacation?

To calculate a prorated vacation, decide whether you want to figure it out per 40 hours worked or per pay period, and then apply the proper formula, according to Procare. This lets you know how much vacation time you have accrued per period in hours.

To calculate the vacation rate per a 40-hour week, input the number of vacation weeks in the following formula: (VW x 40) / (52 - VW) = AR per 40 hours, explains Procare. VW represents the number of vacation weeks per year, and AR is the accumulation rate. So, for example, if an employee has two vacation weeks a year, complete the formula as follows: (2 x 40) / (52 - 2) = 80 / 50 = 1.6 hours of vacation per 40 hours. It's helpful to know this rate to prorate vacation time for an employee who did not work the full year.

To calculate vacation time rate for a specific pay period, use the following formula: VW x 40 / PP = AR per pay period. PP represents the number of pay periods per year. In this case, assuming 26 pay periods a year and the same two weeks of vacation, calculate the equation as follows: 2 x 40 / 26 = 80 / 26 = 3.08 hours of vacation per pay period.