Annual Leave Calculator Australia (2026/27): Accrual, 17.5% Leave Loading & Termination Tax
Calculate your exact Australian Fair Work NES annual leave accrual (4 weeks / 152 hours on a 38-hour week, pro-rata part-time, or 5 weeks / 190 hours for shiftworkers), compare 17.5% Annual Leave Loading vs. Weekend/Shift Penalty Rates (plus 12% Payday Super), and work out your net unused leave payout after ATO Schedule 7 tax when resigning or taking redundancy.
Built by R.K. · Last verified: · Checked against Fair Work Ombudsman Annual Leave (NES), 17.5% Annual Leave Loading Rules, and ATO PAYG Withholding Schedule 7 (2026–27).
🧮 Interactive Fair Work Annual Leave, 17.5% Loading & ATO Schedule 7 Calculator
Step 1: Fair Work NES Entitlement & Ordinary Hours
38 hrs = standard AU full-time · e.g. 22.8 hrs = 3 days × 7.6h.
7.6 hours is standard for a 38-hour, 5-day week (38 ÷ 5 = 7.6h).
52 weeks = 1 year · 26 weeks = 6 months · 4 weeks = ~1 month.
Unpaid parental/unauthorised leave pauses annual leave accrual.
Do NOT include public holidays falling during your leave (s.89).
Used to value your accrued leave balance in AUD ($).
Your Fair Work NES Annual Leave Balance
Net Available Annual Leave (Hours)
152.00 hrs
20.00 standard days (at 7.6h/day) · 4.00 weeks
Leave Value (Inc. 17.5% Loading)
$6,876.10
$5,852.00 base + $1,024.10 loading (17.5%)
Weekly Accrual Rate
2.9231 hrs/wk
5.8462 hrs per fortnight · 12.67 hrs/mo
Accrual per Ordinary Hour Worked
0.0769 hrs
Exact NES fraction: 4 ÷ 52 (1 per 13 hrs)
Full-Time Equivalent (FTE) Ratio (vs. 38h Week)100.0% FTE (38.0h / 38h)
Total Gross Leave Accrued (Before Leave Taken)152.00 hrs (20.00 days)
Less Annual Leave Already Taken-0.00 hrs (0.00 days)
12% Payday Super Earned When Taking This Leave+$825.13 Super (12% OTE)
Public Holiday Protection (Fair Work Act s.89)PHs during leave = 0 hrs deducted
Step 1: Holiday Hours & Modern Award “Greater Of” Check
E.g. 76 hours = 2 weeks (10 days) · 38 hours = 1 week (5 days).
Your base award or agreement hourly rate before loadings.
Under most Modern Awards, you get 17.5% OR your roster penalties—whichever is higher!
Compares total 17.5% loading across all leave hours vs. penalty uplift on rostered hours.
17.5% Leave Loading vs. Penalty Rate Verdict
Total Gross Holiday Pay Due
$3,214.80
17.5% Loading wins (+$478.80 vs +$432.00 penalties)
Option A: 17.5% Leave Loading Uplift
+$478.80
+$6.30/hr across all 76 leave hours
Option B: Roster Shift/Weekend Penalties
+$432.00
50% penalty on 24 rostered hours
12% Payday Super on Holiday Pay
+$385.78
Paid into your Super fund (OTE rule)
Base Ordinary Pay for Leave Period$2,736.00
Winning Uplift Applied (Higher of Loading vs. Penalties)+$478.80 (17.5% Loading)
Effective Hourly Rate While on Annual Leave$42.30 / hour
Total Package (Gross Holiday Pay + 12% Super)$3,600.58
Step 1: Final Pay Unused Leave & ATO Schedule 7 Details
Check your payslip for total untaken annual leave hours.
E.g. $88,920 salary ÷ 1,976 annual hours = $45.00/hr.
Fair Work s.90(2): loading MUST be paid on termination if applicable while employed.
Used by ATO Schedule 7 to calculate marginal withholding.
Genuine redundancy caps tax on unused annual leave at 30% + 2% Medicare = 32%.
Unused Leave Payout & ATO Schedule 7 Verdict
Net Cash Payout in Hand (After Tax)
$4,314.60
From $6,345.00 gross payout
ATO Schedule 7 Tax Withheld
-$2,030.40
Effective tax rate: 32.0% (inc. 2% Medicare)
Gross Payout (Base + 17.5% Loading)
$6,345.00
$5,400.00 base + $945.00 loading
12% Super Lost on Lump-Sum Payout
-$761.40
0% Super on termination vs 12% if taken as leave!
Base Unused Leave Value (120h × $45.00)$5,400.00
Mandatory 17.5% Leave Loading on Termination (s.90(2))+$945.00
ATO Schedule 7 Method Applied52-Week Marginal Annualisation
Superannuation Paid on Termination Lump Sum$0.00 (Not OTE under SGR 2009/2)
12% Super If Taken as Leave Before Resigning+$761.40 into Super fund
✅ 3 Australian Fair Work & ATO Rules Most Workers Miss (2026/27):
(1) Under Section 90(2) of the Fair Work Act 2009, if you are entitled to 17.5% annual leave loading (or shift penalty rates) while employed, your employer must also pay that 17.5% loading on all unused annual leave when your employment ends—even if your contract or award says otherwise. (2) Under ATO Ruling SGR 2009/2, taking annual leave before you resign earns 12% Superannuation Guarantee (paid each payday under Payday Super from 1 July 2026), whereas cashing out unused leave on termination pays 0% Super. (3) Under ATO Schedule 7, genuine redundancy caps tax on unused annual leave at 32% (including Medicare levy), even if you earn over $135,000 or $190,000!
Quick Answer: How does annual leave accrue and get paid out in Australia?
Under the National Employment Standards (NES), full-time and part-time employees in Australia accrue 4 weeks of paid annual leave per year based on their ordinary hours (5 weeks for eligible continuous shiftworkers). For a full-time employee working a standard 38-hour week (7.6 hours/day), 4 weeks equals 152 hours (20 days) per year—accruing at 2.9231 hours per week (or 0.076923 hours per ordinary hour worked). Part-time employees accrue on the exact same ratio (`Ordinary Weekly Hours ÷ 38 × 152`). Casual employees do not accrue paid annual leave because they receive a 25% casual loading instead.
1. Australian Pro-Rata Annual Leave Accrual Table (Full-Time, Part-Time & Shiftworkers)
Under Section 87 of the Fair Work Act 2009, annual leave accumulates progressively from your very first day of work based on ordinary hours worked (including paid leave taken, such as paid annual leave, paid personal/carer’s leave, and community service leave, but excluding overtime and unpaid leave). Here is the exact accrual reference across common Australian work patterns:
| Employment Pattern (Ordinary Hours) | FTE Ratio (vs. 38h) | Accrual per Hour Worked | Accrual per Week | Accrual per Fortnight | Total Annual Leave / Year (Hours & 7.6h Days) |
|---|---|---|---|---|---|
| 1 Day / Week (7.6 hrs/wk) | 20% FTE | 0.076923 hrs | 0.5846 hrs/wk | 1.1692 hrs/fn | 30.40 hours (4.0 standard days) |
| 2 Days / Week (15.2 hrs/wk) | 40% FTE | 0.076923 hrs | 1.1692 hrs/wk | 2.3385 hrs/fn | 60.80 hours (8.0 standard days) |
| 2.5 Days / Week (19.0 hrs/wk) | 50% FTE | 0.076923 hrs | 1.4615 hrs/wk | 2.9231 hrs/fn | 76.00 hours (10.0 standard days) |
| 3 Days / Week (22.8 hrs/wk) | 60% FTE | 0.076923 hrs | 1.7538 hrs/wk | 3.5077 hrs/fn | 91.20 hours (12.0 standard days) |
| 4 Days / Week (30.4 hrs/wk) | 80% FTE | 0.076923 hrs | 2.3385 hrs/wk | 4.6769 hrs/fn | 121.60 hours (16.0 standard days) |
| 5 Days Full-Time (38.0 hrs/wk · 4 Wks NES) | 100% FTE | 0.076923 hrs | 2.9231 hrs/wk | 5.8462 hrs/fn | 152.00 hours (20.0 standard days) |
| Continuous Shiftworker (38.0 hrs/wk · 5 Wks NES) | 100% FTE (5 Wks) | 0.096154 hrs | 3.6538 hrs/wk | 7.3077 hrs/fn | 190.00 hours (25.0 standard days) |
2. How 17.5% Annual Leave Loading vs. Penalty Rates Works Under Modern Awards
Annual leave loading—originally introduced in the early 1970s at 17.5% to compensate workers who lost regular overtime while on holiday—is built into almost all Australian Modern Awards (such as the General Retail Industry Award, Hospitality Industry Award, Clerks Private Sector Award, and Storage Services and Wholesale Award) as well as many Enterprise Agreements.
- The “Greater Of” Rule (17.5% Loading vs. Weekend/Shift Penalties): Most Modern Awards state that when an employee takes annual leave, they must be paid their base rate plus either 17.5% annual leave loading OR the weekend and shift penalty rates they would have worked according to their roster—whichever is higher. For example, if a warehouse or hospitality employee would have earned a 50% Saturday penalty and 100% Sunday penalty worth $540 during their two-week holiday, and 17.5% loading across the two weeks is only $478.80, the employer must pay the higher $540 penalty amount!
- Mandatory Payment on Termination (Fair Work Act s.90(2)): Under Section 90(2) of the Fair Work Act 2009, when employment ends for any reason, the employer must pay out all untaken annual leave at the exact rate the employee would have received had they taken the leave while employed—which includes 17.5% annual leave loading (or higher rostered penalties).
3. ATO Schedule 7 Tax Rates on Unused Annual Leave Payouts (2026–27)
When you leave a job and your unused annual leave (and leave loading) is paid out as a lump sum on your final payslip, your employer must withhold tax under ATO PAYG Withholding Schedule 7 (NAT 3351). The tax rate depends on why your employment ended and your 2026–27 income tax bracket:
| 2026–27 Resident Taxable Income | Normal Resignation / Dismissal / Retirement (ATO Sch 7 Marginal Method) | Genuine Redundancy / Invalidity / Early Retirement (ATO Sch 7 Concessional Cap) | 12% Superannuation Guarantee on Termination Lump Sum |
|---|---|---|---|
| $0 – $18,200 | 0% | 0% (Marginal rate is lower than 32% cap) | 0% (Not OTE) |
| $18,201 – $45,000 | 18.0% (16% tax + 2% Medicare levy) | 18.0% (Marginal rate is lower than 32% cap) | 0% (Not OTE) |
| $45,001 – $135,000 | 32.0% (30% tax + 2% Medicare levy) | 32.0% Flat Cap (30% + 2% Medicare) | 0% (Not OTE) |
| $135,001 – $190,000 | 39.0% (37% tax + 2% Medicare levy) | 32.0% Flat Cap (Saves 7% tax on redundancy!) | 0% (Not OTE) |
| $190,001 and over | 47.0% (45% tax + 2% Medicare levy) | 32.0% Flat Cap (Saves 15% tax on redundancy!) | 0% (Not OTE) |
Frequently Asked Questions: Australian Annual Leave & Final Pay (2026/27)
Does unused annual leave expire at the end of the year in Australia?
No. Under the Fair Work Act 2009, unused annual leave rolls over from year to year and accumulates indefinitely until you either take it, cash out a portion (where permitted by your award/agreement while keeping at least 4 weeks remaining), or have it paid out in full when your employment ends.
Can my employer force me to take annual leave (e.g., Christmas shutdown or excessive leave)?
Only where permitted by your Modern Award, Enterprise Agreement, or (for award/agreement-free employees) where the requirement is reasonable—such as during a temporary Christmas/New Year business shutdown with written notice, or when you have accrued an “excessive leave balance” (typically more than 8 weeks, or 10 weeks for a shiftworker). Under Fair Work shutdown rules, employers can no longer force employees onto unpaid leave during a shutdown unless agreed.
What happens if I get sick or injured while on annual leave?
Under Section 89(2) of the Fair Work Act 2009, if you become ill or injured while on paid annual leave and provide acceptable medical evidence (such as a medical certificate), you can convert those days to paid personal/carer’s (sick) leave—and your employer must re-credit those hours back to your annual leave balance!
Can I cash out my annual leave without resigning?
Most Modern Awards and Enterprise Agreements allow cashing out annual leave if four strict rules are met: (1) there is a signed written agreement for each cash-out, (2) you retain at least 4 weeks of accrued annual leave after the cash-out, (3) you are paid the full amount you would have received had you taken the leave (including 17.5% loading and 12% Super), and (4) Under-award caps are respected (most awards cap cash-outs at a maximum of 2 weeks in any 12-month period).
Why is it better to take annual leave before resigning than to cash it out on termination?
Because of the 12% Superannuation Guarantee OTE rule. When you take paid annual leave while still employed, those wages are Ordinary Time Earnings (OTE) and your employer must pay 12% Super on top (Plus you continue accruing extra annual leave and sick leave during the weeks you are on holiday!). When you cash out unused annual leave as a termination lump sum, it is not OTE—so you receive $0 in Superannuation and accrue 0 extra leave hours.
Official Australian Fair Work & ATO Primary Sources
- Fair Work Ombudsman: Annual Leave — National Employment Standards (NES) Entitlements & Accumulation
- Fair Work Ombudsman: Payment for Annual Leave — 17.5% Leave Loading vs. Weekend & Shift Penalty Rates
- Fair Work Ombudsman: Final Pay — Mandatory Payment of Unused Annual Leave & 17.5% Leave Loading on Termination
- Australian Taxation Office (ATO): PAYG Withholding Schedule 7 — Tax Table for Unused Leave Payments on Termination (NAT 3351)
- Australian Taxation Office (ATO): Ordinary Time Earnings (OTE) List — Superannuation on Leave vs. Termination Payouts
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⚠️ Australian Employment & Tax Disclaimer: This calculator provides educational payroll and tax estimates based on the Fair Work Act 2009 (National Employment Standards), Fair Work Ombudsman Modern Award guidance, ATO PAYG Withholding Schedule 7 (NAT 3351), and the 12% Superannuation Guarantee rate current for the 2026–27 financial year. Individual Modern Awards, Enterprise Agreements, and common-law contracts may contain specific leave loading, shiftworker, or all-in salary offset clauses. Always verify your entitlements with the Fair Work Ombudsman (13 13 94), the ATO, or a registered Australian tax/payroll professional.