Introduction to monthly vacation earning
This article explains how to set up a vacation policy with monthly earning in BitaBIZ.
The article describes:
how policies are set up
which planning rules can be applied
how vacation is handled in the calendar and integrations
This article describes the general functionality in BitaBIZ.
If your company follows specific national vacation regulations, you should also follow the setup in the relevant country-specific article.
Other leave that is managed via other leave (e.g. the 6th week of vacation, additional vacation days, and care days) is set up separately from vacation. Read more about other vacation here.
Monthly earning
With monthly earning, employees earn vacation days continuously throughout the year.
earning is calculated based on:
the annual number of vacation days
the employee’s start date
the selected earning method
If a vacation policy grants 25 vacation days per year, the employee will accrue 2.08 days per month. earning continues automatically as long as the employee remains employed.
Set up monthly vacation earning on a policy
The earning rule is selected in the policy and applies to all employees assigned to it.
Go to Setup Admin
Select Modules
Click Create new policy or Edit an existing one
Open the Vacation tab
Find the Earning section
Then select: Earning method → Monthly earning
Earning settings
When monthly earning is selected, the following settings can be configured.
Vacation year
Choose which vacation year the policy should follow.
The vacation year defines:
the earning period
the usage period
These rules vary from country to country.
Therefore, the vacation year should be selected in accordance with the company’s local legislation.
See country-specific articles for details.
Annual accrued days
Enter the number of vacation days the employee accrues per year.
The system will then automatically calculate the monthly earning.
Earning for new employees
New employees begin accruing vacation from their start date.
If the employee starts:
on the 1st of the month → a full month of earning is earned
mid-month → earning is calculated proportionally
Earning timing (start or end of period)
Choose when accrued vacation days become available to employees.
Start-of-period earning
Vacation days become available at the beginning of the month.End-of-period earning
Vacation days only become available at the end of the month.
Selection of vacation registration rule
The vacation registration rule determines how employees can plan vacation. It is configured as follows:
Go to “Setup Admin”
Select “Modules”
Click “Edit” for the desired policy, or click “Create new policy”
Open the “Vacation” section
Open the “Rules” subsection
BitaBIZ supports three types of vacation registration rules:
Max
Employees can only plan vacation that has already been accrued. This ensures that employees never have a negative vacation balance.Unpaid
Employees can request vacation without pay. This method is typically used if the employee does not have sufficient vacation balance.Advance
Employees can plan vacation before the days are accrued.
This means employees can use vacation days in advance (advance vacation), which are accrued continuously later in the vacation year. This allows for a negative vacation balance, which is balanced over time.
In the policy, you can specify how many days of advance vacation an employee is allowed to have.
The vacation registration rule is selected individually for each employee group via the policy settings.
Approval requirements can be enabled or disabled.
Choose whether employees should be able to register half vacation days or only full days.
Find user guides for the three vacation registration rules here:
User guide for vacation with Max rule
User guide for vacation with Unpaid rule
User guide for vacation with Advance rule
Click on the image to view the three vacation methods:
Available settings for the vacation policy
Once you have set up the basic vacation policy with monthly earning, you can add a range of optional settings.
These settings help manage planning, calendar rules, and integrations.
Planning rules
Minimum vacation balanceYou can require that a minimum number of vacation days must be planned before employees can register days from an other vacation (e.g. additional vacation days). The setting is found under “Rules” in the policy.
This rule helps ensure that vacation days are used in time and do not expire unused.
Note: This rule is relevant for setups that follow the Danish vacation year, as the Holiday Act allows up to 5 remaining vacation days to be carried over or paid out. |
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Handling of remaining vacationIf the vacation policy follows the Danish vacation year, unused vacation days expire on 31/12.
During the transition period from September 1st to December 31st, remaining days are automatically used before new vacation days. |  |
Advance vacationIf advance vacation is enabled, employees can take vacation before the days are accrued. You can choose between:
The setting is found under Vacation → Rules in the policy.
Note: Carrying over a negative vacation balance to a new vacation year is not in accordance with the Danish Holiday Act. If carryover is allowed, this should be coordinated with the setup in your payroll system. |
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Public holidays
Fixed public holidaysBitaBIZ supports official public holidays for more than 40 countries.
Vacation days that fall on public holidays are not deducted from the vacation balance.
Add public holidays under “Public holidays” in the policy – they are automatically created in employees’ calendars. |  |
Floating public holidaysFloating public holidays can be scheduled freely by the employee.
They are created via an other vacation or a day bank, which can be renamed to “Floating public holidays” and supports earning.
This gives employees flexibility to choose their own days off, for example for religious reasons. |
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Weekends
Work weekSpecify whether weekends should be included in the vacation calculation or treated as days off.
This is configured in the policy under Work week → Weekend days off. | 
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Approval message
Reminder to approverYou can send an automatic reminder to approvers if vacation or absence registrations have not been approved by a selected date.
This is activated under Modules → Messages & rules → Payroll administration. |
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Integrations
Payroll exportVacation can be transferred to the company’s payroll system.
Once the vacation has been processed in payroll, the registration is locked and cannot be changed by the employee.
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Outlook ExchangeVacation is automatically synchronized to employees’ Outlook calendars when the integration is enabled.
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Policies with or without paid vacation
Absence codes for the payroll systemYou can assign different absence codes for vacation to the policies.
Absence codes can be customized per employee group (e.g. with or without paid vacation) so they match the setup in the payroll system. |
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Special employee groups
If your company has employees with special conditions, a customized vacation setup may be required.
This typically applies to:
part-time employees, where earning depends on the number of working days
apprentices and trainees, who may have special rules, for example regarding advance vacation
In these cases, it is recommended to follow the relevant articles for correct setup:
Read more about vacation policy for part-time employees
Read more about vacation policy for students and apprentices
Note: Rules for these employee groups may be country-specific.
FAQ
When does a new employee start accruing vacation?
When does a new employee start accruing vacation?
An employee accrues vacation from their start date.
If the employee starts on the 1st of the month, a full month of earning is earned
If the employee starts mid-month, vacation is accrued proportionally (per employment day)
Earning is calculated automatically based on the vacation policy (e.g. 2.08 days per month with 25 days annually).
What is the difference between vacation and additional vacation days in the system?
What is the difference between vacation and additional vacation days in the system?
Vacation and additional vacation days (other vacation) are two separate balances with their own rules:
Vacation: Statutory vacation days, accrued according to applicable legislation.
Additional vacation days (other vacation): Extra days off (e.g. the 6th week of vacation or care days) defined by the company. These are not governed by vacation law
How do public holidays work in the system?
How do public holidays work in the system?
Public holidays are assigned to the policy under the Public holidays tab.
If vacation overlaps with a public holiday:
the public holiday is not counted as a vacation day
the vacation balance is therefore not reduced for that day
Example:
A week of vacation with one public holiday → only 4 vacation days are deducted.
When is monthly earning used for a vacation policy?
When is monthly earning used for a vacation policy?
Monthly earning is used in countries where vacation is earned continuously.
The choice of earning method depends on the country’s regulations and the company’s setup.
Find country-specific setups here.
How do I activate public holidays for a country in the calendar?
How do I activate public holidays for a country in the calendar?
To activate country-specific public holidays:
Go to Setup Admin → Modules
Open or create a policy
Go to the Public holidays section
Select the country and mark the relevant public holidays to be activated in the policy
What should I do if a public holiday is missing from the list?
What should I do if a public holiday is missing from the list?
BitaBIZ retrieves public holidays from timeanddate.com, and therefore only supports public holidays available there by default.
If an official public holiday is missing from the list, it must be handled manually.
Contact our support team for assistance.
If the missing day is not an official public holiday, it can be added by creating your own registration types. Read more about how to create these here.
When do accrued vacation days become available?
When do accrued vacation days become available?
The availability of accrued vacation days depends on the policy setting:
Start of period (Primo) → at the beginning of the month
For example, September’s accrued days are granted on 1/9 and can be used from that date.End of period (Ultimo) → at the end of the month
For example, September’s accrued days are granted on 1/10 and can be used from that date.
Can employees take vacation before it is accrued?
Can employees take vacation before it is accrued?
It depends on the vacation rule in the policy whether employees can use vacation in advance:
Max → only accrued vacation can be used
Advance vacation → vacation can be taken before it is accrued
The number of days that can be taken in advance is defined in the policy.
Unpaid → unpaid vacation is possible
What does “Used vacation days in the vacation year are not limited to the days accrued in the same year” mean?
What does “Used vacation days in the vacation year are not limited to the days accrued in the same year” mean?
When this setting is enabled, it is possible to use more vacation days in a vacation year than are accrued within that same year.
This means that the vacation year can end with a negative vacation balance, which is then carried over to the next vacation year.
The negative balance is subsequently offset against earning in the new vacation year.
Please note: Carrying over a negative vacation balance to a new vacation year is not in accordance with the Danish Holiday Act.
If the advance vacation rule is enabled, but the setting “Used vacation days in the vacation year are not limited to the days accrued in the same year” is not enabled, employees can only use the vacation days accrued within the same vacation year. In this case, it is not possible to end the vacation year with a negative balance.