---
title: "What's New: Leave Monetization"
---

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# What's New: Leave Monetization

#### Background

---

The Leaves Monetization module allows payroll administrators to convert employees' unused leave credits, such as Vacation, Sick, or Emergency leaves, into monetized leave.

The feature aims to automate what was previously a time-consuming and error-prone manual process, improving efficiency by enabling payroll admins to categorize taxable and non-taxable leaves based on company policies and process the monetized amounts accordingly.

#### What’s New?

---

The Leaves Monetization feature in Sprout Payroll introduces automated processes for converting unused employee leave credits into monetized leaves.

- **Automated Leave Conversion**: Eliminates the manual effort previously required to monetize leaves, reducing errors and administrative time.
- **Taxable and Non-Taxable Leave Categorization**: Allows admins to configure tax treatments based on company policies with two flexible tax options: 
    - **Standard Policy**: Only the first 10 vacation leave days are non-taxable.
    - **Flexible Policy**: The first 10 unused leave days, regardless of type, are non-taxable.
- **One-Time Adjustments**: Automatically uploads one-time monetized leave adjustments to employee profiles, streamlining payroll processing.

**Related Articles:**

- [Frequently Asked Questions (FAQs) on Leave Monetization](https://guide.sprout.ph/frequently-asked-questions-faqs-on-leave-monetization-?hsLang=en)
- [How to Process Leave Monetization in the Sprout Payroll System](https://guide.sprout.ph/how-to-process-leave-monetization-in-sprout-payroll?hsLang=en)

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