Annual Leave Payout Calculator.
Work out what your unused annual leave is actually worth when you leave a job. Base pay, 17.5% loading where it applies, and what the ATO takes. Paid out under section 90 of the Fair Work Act 2009.
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| Component | Formula | Value |
|---|---|---|
| Annual leave rate | 4 wks/yr | 4 wks |
| Hours accrued | over service period | 152.42 hrs |
| Base payout (s.90) | 152h × $35.00 | $5,334.62 |
| 17.5% loading | where award applies | +$933.56 |
| Gross payout | base + loading | $6,268.17 |
| PAYG tax (illustrative 32.5%) | taxed as ordinary income | −$2,037 |
| Net to employee | gross − PAYG | $4,231 |
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.
How an annual leave payout is calculated
When employment ends, section 90(2) of the Fair Work Act 2009 requires your employer to pay out every hour of accrued but unused annual leave. The rate is the one you would have been paid had you actually taken the leave, not a discounted rate.
In practice that is three numbers: your accrued hours, your ordinary hourly rate, and leave loading if your award provides it. Overtime, most allowances and bonuses sit outside ordinary pay and do not inflate the payout.
The formula. Accrued hours x ordinary hourly rate = base payout. Base payout x 1.175 = payout where 17.5% leave loading applies.
What 4 weeks of annual leave is worth by salary
Full-time employees accrue 4 weeks a year under the NES, which is 152 hours on a 38-hour week. This is the gross value of a full year’s accrual before tax.
| Annual salary | Ordinary hourly rate | 4 weeks (152 hrs) | With 17.5% loading |
|---|---|---|---|
| $60,000 | $30.35 | $4,613 | $5,421 |
| $70,000 | $35.41 | $5,382 | $6,324 |
| $80,000 | $40.47 | $6,151 | $7,228 |
| $90,000 | $45.53 | $6,921 | $8,132 |
| $100,000 | $50.59 | $7,690 | $9,035 |
| $120,000 | $60.71 | $9,228 | $10,843 |
| $150,000 | $75.89 | $11,535 | $13,554 |
Ordinary hourly rate derived as salary / 52 / 38. Gross figures, before PAYG withholding. Your award may set a different ordinary-hours week.
How an annual leave payout is taxed
This is where most estimates go wrong, because the treatment depends on why you left, not on how much you are owed.
| Reason for leaving | Leave accrued | Withholding | Reported as |
|---|---|---|---|
| Normal termination (resignation, retirement, ended for inefficiency) | After 17 Aug 1993 | Marginal rates | Salary/wages |
| Normal termination | Before 18 Aug 1993 | 32% | Lump Sum A |
| Genuine redundancy, invalidity or early retirement scheme | Any date | 32% | Lump Sum A |
ATO Schedule 7, applying to payments made from 1 July 2026. Annual leave loading is withheld on exactly the same basis as the leave itself.
The reporting label matters as much as the rate. On an ordinary resignation, leave accrued after 17 August 1993 is included in salary and wages, not reported at Lump Sum A. Lump Sum A is used only where the 32% rate applies: a genuine redundancy, invalidity or early retirement scheme payment, or the shrinking pool of leave accrued before 18 August 1993.
Two further rules catch people out. If you have not given your employer your tax file number, withholding jumps to 47% (45% for a foreign resident without a TFN). And where a post-1993 normal-termination payment is under $300, the employer withholds the lesser of the table amount or 32%.
The 32% rate is not automatic. A widely repeated claim is that leave payouts are always taxed at a flat 32%. They are not. That concessional rate applies only to genuine redundancy, invalidity and early retirement scheme payments. On an ordinary resignation your payout is taxed at your marginal rate, which for most full-time earners is higher.
Is super paid on an annual leave payout?
Generally no. The ATO excludes a lump sum paid for unused annual leave on termination from ordinary time earnings, so the super guarantee does not apply to it. Annual leave you actually take while employed is a different matter: that is ordinary time earnings and does attract super.
Common mistakes
- Assuming the 32% concessional rate applies. It applies to genuine redundancy, invalidity and early retirement only.
- Forgetting leave loading. Where an award provides 17.5% loading it is generally payable on the payout too, which is a material difference.
- Using your total package as the hourly rate. The payout is based on ordinary pay, excluding overtime and most allowances.
- Expecting super on the payout. It is not ordinary time earnings.
- Overlooking long service leave. LSL is paid out separately under your state Act, with its own accrual bands and tax treatment.
Related calculators
- Final pay calculator for everything owed on your last day, not just leave.
- Annual leave calculator for accrual, balance and cash-out.
- Leave loading calculator for the 17.5% component on its own.
- Long service leave calculator, paid out separately under state law.
- Redundancy calculator and how redundancy pay is taxed.
- Termination pay calculator for notice and payment in lieu.
Annual leave payout questions.
The questions people ask when they are about to leave a job.
How is an annual leave payout calculated?
How much is 4 weeks of annual leave worth?
How is an annual leave payout taxed?
Is annual leave payout taxed at 32%?
Is superannuation paid on an annual leave payout?
Do I get leave loading on my payout?
Do casual employees get an annual leave payout?
When must my employer pay out my annual leave?
Where these figures come from.
Payout amounts are calculated from section 90(2) of the Fair Work Act 2009, which requires unused annual leave to be paid at the rate the employee would have received had they taken the leave. Leave loading of 17.5% is applied where the relevant modern award provides it.
Withholding rates are taken from ATO Schedule 7, the tax table for unused leave payments on termination, published 17 June 2026 and applying to payments made from 1 July 2026. This page states the withholding treatment rather than computing a PAYG figure, because the marginal-rate path in Schedule 7 is a seven-step calculation that depends on your last full pay period, your pay cycle and your tax-free threshold status. For an exact figure, work through Schedule 7 or ask your payroll team.