Annual Leave Payout Calculator
Estimates the value of your accrued annual leave that would be paid out upon termination of employment.
Quick Use Samples
Your Employment Details
Enter 17.5 for standard loading, or 0 if not applicable.
Leave Payout Estimate
This payout is for 4.00 weeks of accrued leave.
Your estimated pre-tax payout for 4.00 weeks of accrued leave is $6,251. After an estimated $2,032 in taxes, your net payout is approximately $4,219. This amount is taxed as a lump sum, which may be at a different rate than your usual pay. Consult the ATO for precise tax implications.
Payout Breakdown
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What is Annual Leave Payout?
When your employment ends, you are entitled to be paid out for any unused annual leave you have accrued. This payout is calculated at your base rate of pay and, in many cases, includes your annual leave loading. It's a key component of your final pay.
Behind the Formula
The calculation is your total accrued leave hours multiplied by your ordinary hourly rate of pay. If your award or agreement includes annual leave loading (typically 17.5%), this is added to the total. The final amount is taxed as a lump sum payment.
Expert Insights
- Leave loading on termination is a common point of confusion. Most modern awards state that you are entitled to the loading on your unused leave, but some older agreements do not. Always check your specific award or enterprise agreement.
- This payout is taxed, but it's treated as a 'lump sum payment on termination' by the ATO, which can have different tax implications to your regular salary, especially if it's a large amount.
- Your employer must pay out your unused annual leave; they cannot force you to take it before you leave unless your award or agreement allows for it.
Actionable Tips
- Check your final payslip carefully to ensure your annual leave payout has been calculated correctly, including any leave loading.
- Keep your own records of the leave you have taken to cross-reference with your employer's records.
- If you are considering resigning, you could choose to take your annual leave before you go, which means your employment and super contributions continue during that period.
Real-World Examples
A full-time worker resigning
A full-time employee resigns with 152 hours (4 weeks) of accrued annual leave. Their payout will be 152 hours times their hourly rate, plus 17.5% leave loading.
A part-time worker made redundant
A part-time worker who works 20 hours a week is made redundant. They have 80 hours of accrued leave. Their payout is calculated on their part-time hourly rate.
An employee with an old agreement
An employee's enterprise agreement from 2008 does not specify that leave loading is paid on termination. In this case, they would only receive their base pay for the unused leave.
Glossary of Terms
Accrued Leave
Annual leave that an employee has accumulated but not yet taken.
Leave Loading
An extra payment (usually 17.5%) on top of your annual leave pay, provided for in many awards and agreements.
Base Rate of Pay
An employee's ordinary rate of pay for their normal hours of work, not including bonuses, loadings, or penalty rates.