How is annual leave payout calculated in Australia?

Annual leave payout is calculated by multiplying your unused leave balance (in hours) by your hourly rate. Your hourly rate is your annual salary divided by 52 weeks and then by your ordinary weekly hours (38 for full-time). Leave loading of 17.5% may also apply under most modern awards.

Do I get leave loading on my annual leave payout?

Whether you receive leave loading (typically 17.5%) on your payout depends on your award, enterprise agreement, or employment contract. Most modern awards include leave loading on annual leave payouts upon termination. Check your specific award or agreement to confirm.

Is annual leave payout taxed differently?

Unused annual leave paid out on termination is taxed at your marginal tax rate as part of your normal income. However, if you are made genuinely redundant, the leave component may receive a concessional flat tax rate of 32% (plus Medicare levy) for leave accrued since 18 August 1993.

Do part-time workers get annual leave payout?

Yes. Part-time employees accrue annual leave on a pro rata basis based on their ordinary hours. When employment ends, all accrued but unused annual leave must be paid out at the employee's base rate of pay for their ordinary hours.

How much annual leave do I accrue per year?

Full-time employees accrue 4 weeks (152 hours or 20 days) of paid annual leave per year under the National Employment Standards. Part-time employees accrue leave proportionally based on their ordinary weekly hours. Leave accrues progressively and accumulates from year to year.

Annual Leave Payout Calculator

Calculate your annual leave payout on termination, including leave loading and estimated tax at marginal rates.

Last verified: 1 July 2025

Annual Leave Payout Calculator — How Much Will You Get? (2026)

Calculate how much your accrued annual leave is worth when you leave a job. Covers payout formula, leave loading, tax treatment on resignation vs redundancy.

Annual Leave Loading: The 17.5% Bonus You Might Be Missing

What is 17.5% annual leave loading and how is it calculated? Use our guide to understand who gets leave loading, how to calculate it, and whether your award or agreement includes it.

Resigning? Your Employer MUST Pay Out All Unused Annual Leave (Here's How Much)

When you resign in Australia, every hour of unused annual leave must be paid out — no exceptions. How it's calculated, leave loading on top, the 7-day deadline, and tax treatment.

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

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