Unpaid Leave Cost Estimator
Calculates the financial impact of taking unpaid days off from work.
Quick Use Samples
Your Leave & Salary
Taking 4 weeks (4.0 weeks) of unpaid leave results in a loss of $6,153.85 in gross pay. After accounting for the tax you would have paid, the actual impact on your take-home pay is a reduction of $4,153.85. Additionally, you will miss out on an estimated $676.92 in employer superannuation contributions.
Estimated Financial Impact
Visualizing the Cost
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What is Unpaid Leave?
Unpaid leave is a period of absence from work that is approved by your employer, but for which you are not paid. While paid leave is an entitlement, unpaid leave is generally granted at the employer's discretion, except in specific circumstances like unpaid parental leave or community service leave.
Behind the Formula
The calculator determines your lost income by first calculating your daily or weekly gross pay from your annual salary. It then multiplies this by the number of unpaid leave days or weeks you plan to take. The tool also estimates the lost take-home pay by applying a simplified tax rate, and calculates the lost employer superannuation contributions for the period.
Expert Insights
- Taking unpaid leave can affect your other entitlements. While it usually doesn't break your 'continuity of service', a long period of unpaid leave may delay your accrual of annual leave and long service leave.
- Your reason for requesting unpaid leave matters. Employers are more likely to approve requests for valid reasons such as study, family matters, or travel, especially if you have been a reliable employee.
- Under the National Employment Standards, you are entitled to unpaid parental leave (up to 12 months) and unpaid community service leave (e.g., jury duty). In these cases, it is a legal right, not just at the employer's discretion.
Actionable Tips
- Plan well in advance. Give your employer as much notice as possible when requesting a significant period of unpaid leave. This shows professionalism and allows them to plan for your absence.
- Put your request in writing. A formal email or letter outlining the reason for your leave and the requested dates creates a clear record for both you and your employer.
- Before you take unpaid leave, ensure you have a detailed budget and sufficient savings to cover your living expenses during the period of no income.
Real-World Examples
An extended overseas trip
An employee takes an extra 4 weeks of unpaid leave to extend a trip to Europe. The calculator shows them this will result in a loss of approximately $6,000 in take-home pay.
Studying for a new qualification
Someone takes one day of unpaid leave per week for six months to attend a course. The tool helps them calculate the total financial impact of this decision on their annual income.
Starting a new job with a pre-booked holiday
A person starts a new job but has a holiday booked before they have accrued any annual leave. They negotiate to take 2 weeks of unpaid leave, using the calculator to understand the impact on their first few months' finances.
Glossary of Terms
Leave Without Pay (LWOP)
The official term for unpaid leave in many workplaces and government sectors.
Continuity of Service
The concept that an employee's period of employment is unbroken, even if it includes periods of leave. This is important for calculating entitlements like long service leave.
Discretionary Leave
Leave that is granted at the employer's choice and is not a legal entitlement.