---
title: Set Up Monthly Allowance with a Fixed Expiry Date
description: Set up a monthly allowance with a fixed expiry date and control how credits renew, expire, and stay aligned with your company policy.
---

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# Set Up Monthly Allowance with a Fixed Expiry Date

With **absence.io**, you can allow vacation days to accrue on a monthly basis while setting a fixed expiration date. This gives your employees the flexibility to plan their time off throughout the year, while you stay in control of when the days expire.

In the **Settings** under **Allowances**, click on the relevant allowance. Then, you can choose between **yearly** and **monthly**. Once you select **monthly**, you can create a **new allowance policy**.

![](https://info.absence.io/hubfs/Knowledge%20Base%20Import/24101805120156-1.png)

### Step 1:

![](https://info.absence.io/hubfs/Knowledge%20Base%20Import/24101974430492-1.png)

 

In this section, you define the basic settings of your policy:

- **Policy name**: Choose a clear name, e.g., "Vacation/Urlaub".
- **Allowance**: Enter how many vacation days should be granted per month (e.g., 2.00 days).
- **Cycle Settings**: Select **"Monthly"** if the allowance should accrue each month.
- **Cycle Start**: Here you can choose when the period begins. The allowance can either be granted on the 1st of each month or on the employee's work anniversary.
- **Allocation**: Decide whether the days should be assigned at the beginning or at the end of the period.

### Step 2:

![](https://info.absence.io/hubfs/Knowledge%20Base%20Import/24102495390748-1.png)

 

Here you define when the accrual should start (e.g. in January) and how often the rule should repeat, i.e. how long the allowance should be accrued monthly.

**Start**: The starting month of the policy.

**Repetitions until expiration**: Specify how many times the monthly allocation should occur before the days expire (e.g. 12 months = days will be accrued for one year).

You have several options to control how unused vacation days expire:

- **Days expire immediately**: No carryover into the next year.
- **No expiration**: Remaining days never expire.
- **Overflow expires after**: For example, let vacation days carry over, but expire automatically after 3 months if unused.
- **Limit available overflow**: You can also limit how many vacation days can be carried over into the new period ("Limit available carryover").

At the bottom of the page, you can click on **“Assign users”** to apply this policy to specific employees. The allowance will start from the defined starting point.

 

**Enjoy using our solution!**  
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