Paid Time Off Based on Hours Worked

How do I Create a Time Off Policy Based on Hours Worked?

Purpose: To show you how to create a time off policy for your hourly employees so they can accrue accurately based on hours worked.

If you haven't created a time off policy in BambooHR, please refer to our help article on how to create a time off policy before viewing this article. That article will help you understand the entire process of creating a policy before you dive into creating a policy for hours worked.

Add a Time Off Policy

When creating the first level of your policy, select "Per hour worked" in the "Amount Accrued" section.

Please note a policy based on hours worked must be created within a time off type that accrues by hours and not days. If you are having trouble selecting the time off type you'd like to add the policy to, please be sure the time off type accrues in hours.

How does BambooHR Determine how Many Hours my Employee has Worked?

The number of hours each employee has worked will need to be imported through the Hours Importer. More information about how to import hours worked can be found in this article.

Once you determine the amount an employee will accrue per hour worked, you will still need to determine what the accrual frequency will be. This refers to how often you will be giving the employee the amount they have accrued over a period of time. This usually aligns with the employee's pay period.

In the example above, the employee will accrue 0.055 hours of time off per hour worked. The total amount of accrual for the previous month will be given to the employee on the 1st of the next month. So if the employee worked a total of 80 hours during the month of January, he or she would receive 4.4 hours of time off on the 1st of February.

What Happens if the Approved Amount of Hours Worked Changes?

The accrual will be rerun from that point forward. And, just like with other policies, if we notice that the policy has been edited after the approved hours were edited, we won't automatically rerun the accruals for the employee. If this does happen, please contact our support team to help you make any accrual changes.


What's Next?

Do you need help assigning your new time off policy to an employee?

Did you know you can use one of our intuitive interactive guides to walk you through how to create a time off policy? Click here to see a list of available guides, follow the instructions at the top, and let the system walk you through the process.

Do you want to learn more about the hours worked importer?