Can I set different leave allowances for each employee?

4 min read By TimeOff Support

Yes. In TimeOff.Management, you can set different leave allowances for different employees.

Some companies call this:

  • holiday allowance
  • annual leave allowance
  • vacation allowance
  • PTO allowance
  • paid time off

The best setup depends on why the employee needs a different allowance.

Main ways to set different allowances

You can manage different allowances in several ways:

OptionUse it when
Department allowanceEveryone in the same department has the same allowance
Individual allowanceOne employee needs a different fixed yearly allowance
Accrual scheduleOne employee earns leave gradually over time
Tenure-based allowanceAllowance increases based on length of service
Manual adjustmentYou need to add or remove days as a one-off change
Leave type limitsYou need to limit a specific leave type, not the main allowance

For a full overview, read: Setting up allowances

Use department allowance for groups of employees

Department allowance is the simplest way to give the same allowance to a group of employees.

For example:

  • full-time employees get 25 days
  • part-time employees are placed in a separate department with a different allowance
  • contractors are placed in a department with no paid holiday allowance

This works well when employees in the same group follow the same rules.

Read more: Managing departments

Use individual allowance for one employee

Use individual allowance when one employee needs a different fixed allowance from their department.

For example:

  • one employee has a custom contract
  • one employee works part time
  • one employee has a special agreement
  • one employee receives 20 days while the department gets 25 days

Individual allowance overrides the department allowance for that employee.

Go to:

Employees → Select employee → Employee Details → Allowance tab

Then enter Edit Mode and set the employee’s individual allowance.

Read more: Setting up individual allowances

Use an accrual schedule when leave is earned over time

Use an accrual schedule when an employee should earn leave gradually.

For example, they may earn leave:

  • monthly
  • quarterly
  • after each work period
  • across a fixed contract period

This is different from a front-loaded individual allowance.

With accrual, the employee does not receive the full yearly amount straight away.

Read more: Employee policies - Accrued Allowance Schedule

Use tenure-based allowance for length of service

Some companies increase allowance based on how long an employee has worked there.

For example:

  • 25 days from start date
  • 26 days after 2 years
  • 27 days after 5 years
  • 30 days after 10 years

This can be managed with Tenure Based Allowance.

Read more: Employee policies - Tenure Based Allowance

Use manual adjustments for one-off changes

Do not change an employee’s yearly allowance for small one-off changes.

Use an allowance adjustment instead.

For example:

  • add 1 day of TOIL
  • correct a mistake
  • remove allowance added in error
  • add a one-off extra day agreed by HR

Allowance adjustments let admins add or remove days and leave a comment explaining the change.

Read more: Allowance adjustments and TOIL

Leave type limits are different

A leave type limit is not the same as the employee’s main allowance.

Main allowance controls the employee’s overall holiday, annual leave, vacation, or PTO balance.

A leave type limit controls one specific leave type.

For example:

  • sick leave may have its own yearly limit
  • working from home may have its own yearly limit
  • unpaid leave may have its own yearly limit

If one employee needs a different limit for one leave type, use individual limits for leave types.

Read more: Individual limits for leave types

Example

Your Sales department has a standard allowance of 25 days.

Most employees should follow that 25-day allowance.

One part-time employee should receive 15 days.

In this case:

  1. Keep the department allowance at 25 days.
  2. Open the part-time employee’s profile.
  3. Go to Employee Details → Allowance tab.
  4. Set an individual allowance of 15 days.
  5. Save the changes.

Only that employee will use the individual allowance.

The rest of the department will continue to use the department allowance.

Which option should I use?

I need to…Use this
Give the same allowance to a whole teamDepartment allowance
Give one employee a different fixed allowanceIndividual allowance
Let an employee earn leave over timeAccrual schedule
Increase allowance based on years of serviceTenure-based allowance
Add or remove days onceManual allowance adjustment
Set a limit for one leave typeLeave type limit
Give one employee a custom leave type limitIndividual limits for leave types

Best practice

Start with department allowance.

Use individual allowance only when one employee needs a different fixed yearly amount.

Use manual adjustments for one-off changes.

Use accrual schedules when leave should be earned over time.

This keeps your allowance setup simple, clear, and easy to manage.