Benefit Groups - Benefits Renewal Options

Contract workers have the following characteristics: Benefits are prorated and calculated based on the Employee's Join Date.

We understand that this feature has been requested by numerous parties over the years.

📌 What is the Renewal Option?
The Renewal Option setting in Benefit Groups allows HR teams to determine how employee benefits are renewed annually. It is especially helpful for managing benefits for employees on contractual or variable start dates.
Although this setting helps achieve the goals typically associated with contract workers, you won't see the term "contract worker" in the product itself. The term can be interpreted differently across organizations.

🛠️ Where to Find This Setting
This setting appears in the Benefit Group Modifier section. The new field is called Renewal Option.

🧭 Available Renewal Options
There are two renewal options to choose from:

1. Default (Company Financial Month)
   •  Benefits are renewed based on your organization’s financial year.
   •  Ideal for permanent employees or organizations with standardized cycles.
   •  This is the default setting.

2. Employee Join Date
   •  Benefits are renewed annually based on each employee’s join date.
   •  Most suitable for contract workers or employees with staggered joining dates.
   •  Each employee gets a unique benefit cycle aligned to their start date.

📘 Example Scenarios

📄 Example 1: New Employee with Join Date Renewal

Scenario:
   •  Join Date: 15 June 2024
   •  Entitlement: RM 1,200 annually
   •  Financial Year: January
   •  Renewal Option: Employee Join Date

Result:
   •  The entitlement period is 15 June 2024 – 14 June 2025
   •  The employee's join date overrides the company’s financial year
   •  Proration is based on the join date

📄 Example 2: Long-Term Employee with Accumulated Entitlement

Scenario:
   •  Join Date: 1 March (5 years ago)
   •  Renewal Option: Employee Join Date
   •  Accumulated setting enabled
   •  Proration: Monthly
   •  Usage date: 16 May 2024

Calculation:
   •  March to May = 3 months
   •  RM 1,200 ÷ 12 × 3 = RM 300 available

Month	Entitlement
Jan, Feb	-
Mar	RM 100
Apr	RM 200
May	RM 300
...	...
Feb (next yr)	RM 1,200

The entitlement renews in March 2025, following the employee’s join date.

📎 Important Notes
   •  Employees under the Employee Join Date renewal option have their own benefit cycle and are not subject to organization-wide proration settings.
   •  If you want to prorate based on your company’s financial calendar, retain the Default (Company Financial Month) setting.

🤔 Frequently Asked Questions (FAQ)
Q: I can’t see the “Employee Join Date” option. What should I do?
A: This feature may be limited by your subscription plan or conflicts with other settings. Please contact our support team or your Customer Success Manager.

Q: Can I use both N-month duration and Employee Join Date together?
A: Not currently. If you choose N-month periods, the system will reset the Renewal Option to Default.

Q: Will this affect how benefits accumulate?
A: Yes. With “Employee Join Date,” the accumulation follows the employee’s individual annual cycle, not the company-wide cycle.

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Related article:
1.  Benefit Groups - Setting Up N-Year/N-Month Benefits for My Employees