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 resignation or ordinary termination is taxed at your marginal tax rate as part of your normal income. However, if you are made genuinely redundant, the leave payout is taxed at a maximum of 32% (30% plus the 2% Medicare levy) per the ATO — if your marginal rate is lower, the lower rate applies.

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

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Last verified: 2 August 2026

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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