Calculate annual leave accrual, payout, 17.5% loading and cash-out under section 87 of the Fair Work Act 2009. For full-time, part-time, casual and shift workers.
| Component | Formula | Value |
|---|---|---|
| Accrual rate (FULL-TIME) | 4 wks × 38h ÷ 52 | 2.923 hrs/wk |
| Hours accrued | 2.923 × 52 wks | 152.42 hrs |
| Hourly base rate | - | $35.00 |
| Base leave value | 152.42 × $35.00 | $5,334.62 |
| 17.5% leave loading | base × 0.175 | + $933.56 |
| Total payout | - | $6,268.17 |
Disclaimer: This tool does not constitute legal or financial advice. Results may be inaccurate due to changes in legislation or your circumstances. This tool does not constitute legal or financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in legislation, modern awards, or your personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Fair Work Ombudsman (fairwork.gov.au). Fair Work Ombudsman.
Every figure derived from current legislation.
Yes, you can cash out annual leave, but only under strict rules. Under sections 92-93 of the Fair Work Act 2009 you must keep at least 4 weeks of accrued leave after any cash-out, and each cash-out needs its own written agreement. Most modern awards add a further cap of 2 weeks per 12-month period. Your employer cannot force or pressure you to cash out, and the payment must equal what you would have been paid had you taken the leave (including leave loading where it applies). Use the Cash-Out option in the calculator above to see your maximum cashable amount. For how the Act defines every leave entitlement, read our guide to the Fair Work Act 2009.
Every hour of accrued but unused annual leave must be paid out on termination under section 90(2) of the Fair Work Act 2009, at the rate you would have received had you actually taken the leave. That means base pay plus 17.5% leave loading where your award provides it. How it is taxed depends on why you left: an ordinary resignation is taxed at your marginal rate, while a genuine redundancy, invalidity or early retirement scheme payment attracts a concessional 32% rate. Superannuation is generally not payable on the payout, because the ATO does not treat it as ordinary time earnings. Work out what yours is worth with the annual leave payout calculator, and see the full withholding rules in our annual leave payout tax guide. Because leave is paid at the rate applying when it is paid out, the 2026 minimum wage increase raised the value of every hour already on your balance.
Annual leave accrues at 4 weeks a year in proportion to the hours you work, building up each pay cycle rather than landing in one lump. On the standard full-time week of 38 hours that is about 2.923 hours of leave for every week worked, or 152 hours over a full year. Part-time employees accrue the same 4 weeks pro-rata to their own hours. For the full breakdown and an accrual table, see annual leave on a 38-hour week or a 40-hour week. To work out a balance from your own hours, use the leave accrual calculator, and to turn hours into days use the hours to days calculator. Common balances have their own worked answer: 100 hours in days, 152 hours in days (a full year of full-time accrual) and 190 hours in days (five weeks for a qualifying shift worker).
These come up in the same pay run or calculation. Each has its own calculator.
The math gets tangled when employment type, hours and timing combine.
“I've been at the same company 3 years. How much annual leave have I accrued?”
3 yrs × 152 hrs = 456 hrs accrued. If he's used 2 weeks (76 hrs), his balance is 380 hrs. At $42/hr that's $15,960 base + $2,793 loading = $18,753 if paid out today.
“I work part-time, 22 hours a week. What's my annual leave entitlement?”
Pro-rata: (22 ÷ 38) × 152 = 87.95 hrs/year = ~11.5 working days. Annual leave is identical for FT and PT, only the proportion changes. 17.5% loading applies the same way.
“As a casual, do I get any annual leave?”
No paid annual leave. Instead, casuals receive a 25% loading on every hour worked, built into the $32/hr. Effective base rate without loading: $25.60/hr. The loading is her annual leave compensation.
The most-asked questions about this entitlement.
Every annual leave calculation on this page is built directly from Fair Work Act 2009 (Cth) s.87 and the relevant modern award where applicable.
Reviewed by a registered HR practitioner.