Annual Leave Payout on $40,000 Salary
See exactly how much your annual leave is worth, including leave loading and termination payouts.
Last verified: 1 July 2025Quick Answer
On a $40,000 salary, one day of annual leave is worth $153.85, one week is $769.23, and the full 4-week annual entitlement is $3,076.92.
Value of Annual Leave at $40,000
| Leave Period | Value |
|---|---|
| 1 day | $153.85 |
| 1 week (5 days) | $769.23 |
| 4 weeks (full year entitlement) | $3,076.92 |
| Hourly rate | $20.24/hr |
Leave Loading (17.5%) on $40,000
Many awards and enterprise agreements provide a 17.5% leave loading on annual leave pay. This is paid on top of your base rate when you take annual leave.
| Item | Amount |
|---|---|
| 4 weeks leave at base rate | $3,076.92 |
| 17.5% leave loading | $538.46 |
| Total with leave loading | $3,615.38 |
Leave Payout on Termination
When your employment ends, all accrued but untaken annual leave must be paid out in your final pay. Here is what you would receive at a $40,000 salary:
| Accrued Leave | Payout (Base Rate) |
|---|---|
| 1 week | $769.23 |
| 2 weeks | $1,538.46 |
| 4 weeks | $3,076.92 |
| 8 weeks | $6,153.85 |
Whether 17.5% leave loading applies to termination payouts depends on your award or enterprise agreement. Check your specific award.
How Annual Leave Accrues
Full-time employees accrue 2.923 hours per week of annual leave (4 weeks / 52 weeks x 38 hours). This accumulates from your first day and carries over year to year with no cap under the NES.
On a $40,000 salary, each hour of accrued leave is worth $20.24. After 6 months, you would have accrued approximately 76.0 hours ($1,538.46).
Part-Time Pro-Rata Calculation
Part-time employees receive annual leave on a pro-rata basis. If your part-time role pays pro-rata of a $40,000 full-time salary:
| Hours/Week | Pro-Rata Salary | 4 Weeks Leave Value |
|---|---|---|
| 20 hrs | $21,052.63 | $1,619.43 |
| 25 hrs | $26,315.79 | $2,024.29 |
| 30 hrs | $31,578.95 | $2,429.15 |
Long Service Leave Value at $40,000
In most states, employees are entitled to 8.667 weeks of long service leave after 10 years of continuous service.
At a $40,000 salary, 8.667 weeks of long service leave is worth $6,666.92. This is paid at your ordinary rate of pay.
Sick Leave Value at $40,000
Full-time employees accrue 10 days of paid personal/carer's leave per year. Sick leave is not paid out on termination, but here is what your employer saves if you don't use it:
10 days of sick leave at $40,000 = $1,538.46/year. Unlike annual leave, sick leave accumulates year to year but is not paid out when you leave. It represents a significant liability saving for your employer if unused.
Frequently Asked Questions
How much is my annual leave worth on a $40,000 salary?
On a $40,000 salary, four weeks of annual leave is worth $3,076.92. With 17.5% leave loading, this increases to $3,615.38. One day of leave is worth $153.85.
How much leave loading do I get on a $40,000 salary?
If your award provides 17.5% leave loading, you receive an extra $538.46 on top of your $3,076.92 annual leave pay — for a total of $3,615.38 for 4 weeks of leave.
What is 4 weeks leave payout on a $40,000 salary?
Four weeks of annual leave paid out on termination at a $40,000 salary is $3,076.92 at base rate. Whether leave loading applies to termination payouts depends on your award or enterprise agreement.
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.