Annual Leave Payout: Questions Answered

→ Open the Annual Leave Payout Calculator

How annual leave payouts work when you leave a job in Australia in 2026 — including the leave-loading rule that's easy to miss.

Frequently asked questions

How much annual leave do I accrue?

The NES gives 4 weeks a year (5 for some shift workers), accruing progressively at about 2.923 hours per 38 ordinary hours worked.

Can I cash out annual leave while employed?

Only under strict conditions in an award/agreement, in writing, keeping at least 4 weeks accrued. Payout on termination is separate and automatic.

Is annual leave loading always 17.5%?

17.5% is the common figure in awards/agreements, but it's not part of the NES — check whether it applied to you. Where it did, it's paid out on termination.

Does my payout include public holidays?

Public holidays that fall during a period of paid annual leave are usually paid as public holidays, not deducted from leave. The payout itself is for accrued annual leave hours.

Is the payout taxed?

Yes — unused annual leave paid on termination is taxable, sometimes at concessional rates depending on the reason for leaving. Check current ATO rules.

What's excluded from the base rate?

Overtime and penalty rates are excluded from the base rate; leave loading is included only where it applied.