Cashing Out Annual Leave Calculator
Can you legally cash out annual leave, and how much would you get? Award rules, the 4-week minimum balance, written agreement requirements and the dollar figure.
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The rules, in short
Cashing out annual leave is legal under the Fair Work Act 2009 (ss 92–94), but every one of these conditions must hold. Award and agreement employees can only cash out if their award or agreement has a cashing-out clause — most modern awards added one in 2016, with a cap of 2 weeks cashed out in any 12 months. Award/agreement-free employees use s94 directly, which has no 2-week annual cap.
- At least 4 weeks of accrued annual leave must remain after the cash-out.
- A separate written agreement is required on each occasion.
- The payment must be at least what you would have been paid had you taken the leave, including leave loading where your award provides it.
- Your employer can't force or pressure you to cash out.
- If you're under 18, a parent or guardian must also sign the agreement.
Sources: Fair Work Act 2009 (Cth) ss 92–94; Fair Work Ombudsman, “Cashing out annual leave”; ATO Schedule 5 (withholding on lump sums paid in service). Rules checked 20 July 2026.
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