You can create custom leave types in Better HR to match your company’s leave policies. Below are step-by-step instructions:
Step 1 — Create a New Leave Type
Go to Settings.
Select the Leave tab.
You will see some preset leave types already in the system.
To create a new one, click + Create Custom Leave.
A pop-up box will appear — fill in:
Leave Type Name
Description
Click Create to save.
Step 2 — Configure Leave Type in Policies
Go to Settings > Policies.
Choose the policy where you want to assign the leave type.
In that policy, go to the Leave tab.
Scroll down and select the leave type you’ve just created.
A leave type configuration box will open.
Step 3 — Setup Leave Type Details
Eligibility
Choose from two options:
Eligible from: select starting eligibility based on:
Service length (1st to 31st day/month/year).
Specific eligibility date: define eligibility based on a custom date.
Leave Balance Generation Schedule
Immediately: employee receives full leave balance right away.
Scheduled: define earning frequency (monthly/yearly) and balance amount.
Advanced Scheduled: assign prorated leave for each of the 12 months.
Leave Generation Cycle
Choose how the leave cycle is calculated:
Gregorian Calendar
Employee Joining Date
Custom Date
Allow Days
Days Available: define how many days of leave employees receive.
Maximum Days: set maximum leave if rollover is allowed.
Mobile Restrictions & Leave Behavior
Half-Day Enable: allow half-day leaves (morning or evening).
Include Day Off and Public Holiday as Leave: if toggled, these dates count toward leave days.
Rollover Remaining Leave: allow remaining leave to carry over into next cycle.
Document Attachment Required: Enable this option to require employees to attach supporting documents when applying for this leave type.
You can also set a minimum number of leave days required before document attachment becomes mandatory.
Days in Advance Required for Submission: set how many days in advance leave must be requested.
Gender: restrict to specific gender if applicable (e.g. maternity leave, paternity leave).
Maximum Leave Days in Single Request: limit the maximum leave length per request.
Minimum Leave Days in a Single Request: This limits the minimum number of days required for a single leave submission.
Can Submit Up to Past Days: If you want to allow employees to submit backdated requests, click this option and specify how many past days are permitted for the application.
Roll Over Remaining Leaves to the Next Cycle
All Remaining Leave: Roll over the entire unused balance to the next cycle. (Current default)
Maximum Rollover Leave Balance: Roll over only a specific amount; any balance exceeding the configured limit will not carry forward.
Configure Advanced Settings
Select Advanced Setting: From the dropdown menu under "Days in advanced required for submission setting," choose Advanced Setting.
Define Conditions: You can specify ranges for leave duration and the corresponding notice period required.
Example: Requests for 1 to 2 days of leave require 1 day of advanced notice.
Example: Requests for 3 to 4 days of leave require 2 days of advanced notice.
Add More Rules: Click the + Add Condition button to create additional tiers as needed for your policy.
Remove Rules: Use the trash icon next to a condition if you need to delete a specific rule.
Payroll Related Settings
Define as Unpaid Type: toggle if this is unpaid leave.
Unpaid Leave Multiplier: define multiplier for salary deduction.
Specific Day Rates Setting
Deduction Day Rate for each specific leave type. This allows you to define exactly how a day's pay is calculated when an employee takes leave, ensuring compliance with different regional or company-specific payroll rules.
Calculation Options
Option | Description |
Policy Deduction Day Rate | (Default) Uses the standard rate defined in your global policy settings. |
Principle Working Days | Uses the standard fixed working days assigned to the employee's profile. |
Scheduled Working Days | Based on the actual shifts/days the employee is scheduled to work in that month. |
Calendar Days | Uses the total number of days in the current month (e.g., 28, 30, or 31). |
Custom Days | Allows you to manually enter a fixed number of days (e.g., always divide by 25) to be used as the divisor for the deduction. |
Entitlement (Extra Days for Service Years)
Extra Days for Service Year: add additional leave based on employee experience.
Or toggle: Don’t give extra day for service year if not applicable.
Step 4 — Activate and Save
After all configurations are done:
Toggle to Activate Leave Type.
Click Confirm.
Finally, click Update Policy to save changes.
✅ Now your leave type is fully created and assigned to the selected policy.