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Administrator Guide
Last Updated: 2025-03-14
Concept: Time Off Earnings

Concept: Time Off Earnings

You can create earnings to calculate workers' paid and unpaid time off. For Payroll for France, you can create earnings and deductions. When you configure time off plans to track balances in Workday Absence Management, earnings can use Workday-provided calculations to retrieve units for approved time off. Payroll for France also includes deductions in Workday-provided calculations for time off plan configurations.

Calculations for Paid and Unpaid Time Off Units

Workday Absence Management automatically creates 3 absence component related calculations each time you add a time off to a time off plan. Use them, with 3 related calculations provided by Workday Payroll, to configure earnings that retrieve the number of paid and unpaid time off units.
Related Calculation
Absence Component Related Calculation
Amount Retrieved
Time Off Paid (Units)
xxx - Time Off Paid
Number of paid days or hours approved for an employee in the current payroll period.
Time Off Unpaid (Units)
xxx - Time Off Unpaid
Number of unpaid days or hours approved for an employee in the current payroll period.
Time Off Total (Units)
xxx - Time Off Total
Sum of paid and unpaid days or hours approved for an employee in the current payroll period.
Examples:
Payroll for Canada, France, and the U.S.:
When defining an earning for paid vacation, you can use a calculation rule of
Time Off Paid (Units) * Rate
. Select
Time Off Paid (Units)
as a related calculation. For the override value, select
Vacation-Time Off Paid
, the automatically generated, absence component related calculation.
The related calculations and associated absence component related calculations they create result in different amounts retrieved. The abbreviation,
xxx,
represents the name of the time off, such as
Vacation
.
For Payroll for France, you can configure your own absence rules through calculated fields. See Workday Community: Absence Calculations for Payroll.
Payroll for the UK:
When defining an earning for paid holiday, you can use a calculation rule of
Time Off Paid (Units) * Rate
. Select
Time Off Paid (Units)
as a related calculation. For the override value, select
Vacation-Time Off Paid
, the automatically generated, absence component related calculation.
The related calculations and associated absence component related calculations they create result in different amounts retrieved. The abbreviation,
xxx
, represents the name of the time off, such as
Holiday
.

Vacation Pay (CAN)

For vacation earnings, configure a separate earning for the vacation pay accrual and the vacation payment.

Position-Based Time Off

Payroll for France recommends assigning only the primary position to a pay group.
When your tenant configuration supports multiple jobs, you can create position-based earnings to calculate paid or unpaid time for position-based time off. When you run the pay calculation process, Workday Payroll retrieves time off units:
Position Based
Worker Based
Retrieves
Earning and time off plan.
Time-off units for the relevant position.
Earning and time off plan.
Time-off units for the worker.
Time off plan.
Earning.
Time-off units for the worker's:
  • Payroll processing position (CAN, USA).
  • Primary position (AUS, FRA, UK).
Earning.
Time off plan.
Time-off units for the worker. The position-based earning resolves separately for each of the worker's positions, and it uses the time off units for the worker in each calculation.
Example: If a worker requests 8 hours off, Workday uses 8 hours in the earning calculation for each position.
You can use calculations to support the proration of time off units (such as units based on FTE and Scheduled Weekly Hours) across positions to prevent paying employees twice for the same time off.

Unpaid Time Off (CAN, UK, USA)

Create pay components to calculate the value of unpaid time off only if:
  • Your time off plans allow requests for unpaid time.
  • You’re reducing base pay or salary by the value of the unpaid hours or days.
To process unpaid time off, you can either:
  • Configure base pay earnings to subtract unpaid time off from an employee's regular wages.
  • Subtract unpaid time off directly from Gross or Net pay accumulations.
Workday recommends that you define negative earnings rather than deductions to calculate the value of unpaid time off.

Unpaid Time Off (FRA)

Workday recommends that for each time off you:
  • Create a deduction to reduce base pay by the value of unpaid hours or days.
  • Create an earning for the payment of the time off.
On the pay results and the payslip, you see the reduction for time off, and the compensation for paid time off as 2 separate lines.
For partially paid absences, create these pay components:
  • A deduction for the entire duration of the time off.
  • An earning for the duration of the time off that is paid.