Annual Leave Payout Calculator Australia 2025-26
About to start a new job, or just want to know what you actually take home.
Calculate your unused annual leave payout on resignation or termination. Includes leave loading (17.5%), estimated tax at your marginal rate, and superannuation guarantee (11.5%). Uses Fair Work Act entitlements.
Uses salary ÷ 52 × weeks × (1 + loading%). Tax is estimated at marginal rate. Contact Fair Work for exact entitlements.
Select the question that matches where you are right now.
Your result shows the gross annual leave payout you are entitled to under the National Employment Standards — base leave pay plus leave loading. The after-tax figure (Standard mode) is an estimate based on your marginal tax rate for the year.
Annual leave payout is not discretionary — it is a guaranteed right under the Fair Work Act. Your employer must pay it regardless of the reason for termination. Failure to do so is a breach of the NES.
Leave loading compensates you for the overtime and penalty rates you would have earned if you had worked instead of taking leave. It has been part of Australian employment law since the 1970s.
The super guarantee (11.5%) is paid on your gross leave payout in addition to the payout amount — it flows to your super fund, not to you directly.
The payout depends on three inputs: your salary, the number of unused weeks, and whether leave loading applies under your award.
The calculation always uses annual salary ÷ 52, regardless of how you are actually paid. This applies to salaried employees — hourly workers' leave is calculated differently (hours accrued × hourly rate).
Most modern awards specify 17.5%, but some are higher (e.g. some manufacturing and hospitality awards) or lower. Enterprise agreements may override the award rate entirely. If you're unsure, check your pay slip or contact Fair Work.
If your final pay falls in late June vs early July, it lands in different tax years. This can make a significant difference if the payout pushes you into a higher bracket. If you have some choice in your final date, consider which financial year gives you a lower total income.
You can't change what you've accrued, but you can plan around how and when it's paid to minimise tax.
If your final pay including leave payout will push you into a higher tax bracket, consider whether crossing a financial year boundary (30 June) helps. The ATO taxes by financial year, so a final pay in July rather than June can save materially.
Making an additional super contribution before your final pay can reduce your taxable income and may offset the tax spike from the lump sum leave payout — especially if you're near a bracket boundary.
You should be able to request your leave balance from payroll or via your payslip system at any time. Knowing the exact balance before negotiating your exit date gives you accurate numbers to plan with.
Once you have your estimated payout, here are the key steps to confirm and receive your entitlements correctly.
Get the exact balance in writing from your employer — either from payroll or a written statement. This should show accrued leave in hours or days, converted to weeks. Don't rely on your own count.
Confirm whether your modern award specifies leave loading, and at what rate. The Fair Work website (fairwork.gov.au) has a Pay and Conditions tool where you can look up your award.
If your employer pays less than you're owed, contact the Fair Work Ombudsman. You can lodge a complaint online — there is no cost, and the FWO has strong powers to recover underpaid entitlements.
The formula for annual leave payout on termination
The basic formula
Annual leave payout = (Annual salary ÷ 52) × weeks of unused leave × (1 + leave loading rate). For most employees under awards, the leave loading is 17.5%. If your enterprise agreement provides a different rate, use that.
| Salary | 4 wks, no loading | 4 wks + 17.5% loading |
|---|---|---|
| $60,000 | $4,615 | $5,423 |
| $80,000 | $6,154 | $7,231 |
| $100,000 | $7,692 | $9,038 |
| $120,000 | $9,231 | $10,846 |
| $150,000 | $11,538 | $13,558 |
What counts as annual leave accrual?
Full-time employees accrue 4 weeks (20 days) of annual leave per year under the National Employment Standards (NES). Part-time employees accrue proportionally. Shift workers may accrue 5 weeks per year under some awards. Leave accrues from the first day of employment.
What leave loading is, who gets it, and when it applies
What is leave loading?
Leave loading is an additional payment of usually 17.5% on top of your normal annual leave pay. It was introduced to compensate workers for losing penalty rates, overtime, and allowances they would have earned if they worked instead of taking leave. It appears on your payslip during leave or as part of your final termination payout.
Who gets leave loading?
Whether you receive leave loading depends on your award, enterprise agreement, or employment contract. Most employees covered by modern awards receive it. Employees on high salaries with no specific award coverage may not, or their total remuneration package may already account for it.
Leave loading on termination
If you are owed leave loading and you have unused annual leave at termination, you are entitled to receive the leave loading on that unused leave — not just the base pay. This applies whether you resign, are retrenched, or dismissed.
17.5% vs higher loading
Some awards and enterprise agreements provide higher leave loading — 20%, 25%, or even 27.5% for some industries. Check your specific award at the Fair Work website (fairwork.gov.au) to confirm your entitlement.
How annual leave payout is taxed on termination
Taxed as ordinary income
Annual leave paid out on termination is taxed as ordinary income at your marginal tax rate — the same as your regular salary. There is no special tax rate or concession. It is not treated as an Employment Termination Payment (ETP) unless paid in lieu of notice or as a redundancy.
Lump sum tax impact
If your final pay includes several weeks of unused leave, it may push your total income for the year into a higher tax bracket. For example, a $120,000 salary employee receiving $15,000 in leave payout has total income of $135,000 — the portion above $135,000 threshold is taxed at 37% instead of 32.5%.
Super guarantee applies
Your employer must pay superannuation on annual leave payouts. The super guarantee rate is 11.5% for 2025-26, rising to 12% from 1 July 2025. This is paid on top of your gross payout amount.
HECS/HELP repayment
If your annual income (including the leave payout) exceeds the HECS/HELP compulsory repayment threshold ($51,550 for 2025-26), you will be required to make a repayment. Your employer should withhold this from the final pay.
Annual leave, long service leave and cashing out rules
Annual leave accrual (NES)
Under the National Employment Standards, full-time employees are entitled to 4 weeks (20 days) of paid annual leave per year. Shift workers may be entitled to 5 weeks. Leave accrues continuously from the start of employment and carries over if unused. Employees cannot be required to forfeit accrued leave.
Long service leave
Long service leave is separate from annual leave and is governed by state legislation. Generally, employees who have worked for 10+ years with the same employer are entitled to approximately 2 months of paid leave. It is also paid out on termination in most states (with some exceptions for short-service resignation). Use a separate long service leave calculator for this.
Cashing out annual leave
Under some modern awards and enterprise agreements, employees may be able to cash out annual leave while still employed. Rules apply: you must keep a minimum 4 weeks, the request must be in writing, and the agreement must allow it. Not all awards permit cashing out.
Leave accrual during notice period
Annual leave continues to accrue during a paid notice period. If you work out your full notice period, you will accrue additional leave entitlements during that time, which are also payable on termination.
❓ Frequently asked Frequently asked questions
Is annual leave paid out on resignation in Australia?
Yes. Under the National Employment Standards, all unused accrued annual leave must be paid out on termination — including resignation, retrenchment, and dismissal. Leave loading must also be paid on the unused leave if it applies under your award or agreement. There is no minimum service period required to receive a leave payout.
What if my employer refuses to pay out my annual leave?
This is a breach of the National Employment Standards. You can lodge a complaint with the Fair Work Ombudsman (fairwork.gov.au) or contact the Fair Work Commission. Your employer can face significant penalties for failing to pay out accrued leave entitlements.
Is annual leave payout taxed differently to my salary?
No — unused annual leave paid out on termination is taxed as ordinary income at your marginal rate. It is included in your gross income for the financial year and taxed accordingly. It is not an ETP (Employment Termination Payment) and does not receive the ETP tax offset.
Does super get paid on annual leave payout?
Yes. Annual leave payouts are ordinary time earnings and attract the superannuation guarantee (11.5% for 2025-26). Your employer must pay super on the gross leave payout amount.
Where these figures come from
Income figures on this page are drawn from the Australian Taxation Office (ATO), the Fair Work Commission (minimum wage and awards), and the Australian Bureau of Statistics (national earnings).
- PAYG withholding & income tax rates — ATO — Individual income tax rates.
- Superannuation Guarantee rate — ATO — Super guarantee percentage.
- National minimum wage — Fair Work Ombudsman — Minimum wages.
- Average weekly earnings — ABS — Average Weekly Earnings.
- Medicare levy — ATO — Medicare levy.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.