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Earned Leave (EL) Management in PrismERP

Earned Leave (EL) in PrismERP is a type of leave that employees accumulate based on the number of days worked. These leaves are typically used for personal rest or long breaks and may be eligible for carry forward and encashment based on company policy. Earned Leave is fully configurable in PrismERP—allowing HR teams to define accumulation frequency, carry forward logic, encashment rules, and validity period.

How to Use This Feature in PrismERP​

A. Define Earned Leave Type​

  • Go to Leave Type Setup
  • Create or Edit a type called "Earned Leave" or "Leave and Encashment"
  • Set frequency of accrual (monthly or yearly)
  • Mark as Encashable and/or Carry Forward Allowed

B. Carry Forward Configuration​

  • Navigate to Carry Forward section
  • Enable Carry Forward Checkbox
  • Select Earned Leave / Leave & Encashment

Carry Forward Configuration

C. Encashment Setup​

  • Navigate to Encashment Setup
  • Select Earned Leave / Leave & Encashment
  • Set:
    • Application Limit: 1/2/3 times per year
    • Salary Base: Basic or Gross
    • Encashable %: 100% of CF balance
    • Calculation Divisor: 30 or Days in Month

Encashment Setup

D. Mapping Policy to Employee​

  • Go to Employee Leave Setup / Group Mapping
  • Assign the relevant Leave Policy (with Earned Leave enabled)
  • Set effective date and assign to branch/grade/employee

Example Use Case:​

  • Employee earns 1.5 EL per month
  • At year-end, unused EL is carried forward (max 18)
  • Total EL balance capped at 60 days
  • EL can be encashed once a year at 100% of Basic Salary using 30-day divisor

Employee Leave Setup