diff --git a/addons/hr_holidays/models/hr_leave_allocation.py b/addons/hr_holidays/models/hr_leave_allocation.py
index 9467d68584f..623e9e18915 100644
--- a/addons/hr_holidays/models/hr_leave_allocation.py
+++ b/addons/hr_holidays/models/hr_leave_allocation.py
@@ -442,6 +442,8 @@ class HolidaysAllocation(models.Model):
                 gained_days = allocation._process_accrual_plan_level(
                     current_level, period_start, allocation.lastcall, period_end, allocation.nextcall)
                 days_added_per_level[current_level] += gained_days
+                if current_level.maximum_leave > 0 and sum(days_added_per_level.values()) > current_level.maximum_leave:
+                    days_added_per_level[current_level] -= sum(days_added_per_level.values()) - current_level.maximum_leave
                 # We have to check for end of year actions if it is within our period
                 #  since we can create retroactive allocations.
                 if allocation.lastcall.year < allocation.nextcall.year and\
diff --git a/addons/hr_holidays/tests/test_accrual_allocations.py b/addons/hr_holidays/tests/test_accrual_allocations.py
index 799270bf5ba..03caaf855c2 100644
--- a/addons/hr_holidays/tests/test_accrual_allocations.py
+++ b/addons/hr_holidays/tests/test_accrual_allocations.py
@@ -686,7 +686,11 @@ class TestAccrualAllocations(TestHrHolidaysCommon):
         allocation.action_validate()
         with freeze_time('2022-7-20'):
             allocation._update_accrual()
-        self.assertEqual(allocation.number_of_days, 10)
+        # The first level gives 3 days
+        # The second level could give 6 days but since the first level was already giving
+        # 3 days, the second level gives 3 days to reach the second level's limit.
+        # The third level gives 1 day since it only counts for one iteration.
+        self.assertEqual(allocation.number_of_days, 7)
 
     def test_accrual_lost_previous_days(self):
         # Test that when an allocation with two levels is made and that the first level has it's action