Annual leave is a minimum entitlement under the National Employment Standards (NES), which apply to every employee covered by the Fair Work Act 2009 — almost all Australian employees. The NES sets a floor of 4 weeks of paid leave per year for full-time employees, with pro-rata for part-time. Modern awards and enterprise agreements can add extras (like leave loading and additional days) but cannot pay less than the NES.
Leave accrues progressively from the first day of work — you don't have to wait 12 months to start earning it. The calculator above estimates your total accrued balance based on hours and tenure; the sections below explain the rules so you can verify yours.
The NES grants an extra week (5 weeks total) to "shift workers" — narrowly defined under section 87(3) of the Fair Work Act. To qualify, all of the following must be true:
Working occasional weekends or evenings doesn't make you a "shift worker" for NES purposes. The award or agreement may grant additional leave under different rules — check yours.
Annual leave accrues progressively across each year of service, based on ordinary hours worked. The standard formula:
Accrual rate = (Ordinary hours worked) × (4 / 52)
For a full-time 38-hour worker, that's 38 × (4/52) ≈ 2.92 hours of leave per week worked, totalling 152 hours after a full year. Accrual continues during paid leave (annual leave, paid personal/carer's leave) but generally stops during unpaid leave.
Leave balance carries over year-to-year with no NES cap, though most awards allow employers to direct workers to use leave once accrual exceeds 8 weeks (10 weeks for shift workers).
Leave loading is a 17.5% top-up paid when annual leave is taken. It originated in the 1970s to compensate workers for missing overtime and shift penalties while on holiday. It is not part of the NES — whether you receive it depends on your modern award, enterprise agreement, or contract.
Awards that include 17.5% loading: most blue-collar and frontline awards — Manufacturing, Retail, Hospitality, Clerks – Private Sector, Building & Construction, Nurses, Teachers (with variations).
Awards that don't: some professional white-collar awards, particularly where pay already includes a "no separate loading" clause. Salaried managers above the high-income threshold often have leave loading absorbed into their package.
Some awards pay leave loading or the equivalent in shift penalties (whichever is higher) — so you don't double-dip.
Requesting leave: you must request leave from your employer; they cannot unreasonably refuse it. There's no minimum notice period in the NES — modern awards may set one (e.g. 4 weeks for periods over 1 week of leave).
Direction to take leave: employers can direct you to take leave during a workplace shutdown (e.g. Christmas closedown) or when your accrued balance is excessive. The direction must be reasonable and given with adequate notice.
Cashing out: only allowed if your award or agreement permits it, and only under strict rules: each cash-out is a separate written agreement, you must keep at least 4 weeks of accrued leave, and you can't cash out more than 2 weeks in any 12-month period. You cannot be forced to cash out.
Any unused annual leave must be paid out on termination, regardless of the reason — resignation, dismissal, redundancy, or end of fixed term. Leave loading also typically applies to the payout where it would have applied during employment. The payout is included in your final pay and may be subject to a different (typically lower) tax treatment under ATO rules.
If you're being terminated, double-check the termination payout calculation: it should include accrued annual leave (in hours) × current hourly rate × (1 + 0.175 if loading applies).
Full-time, 38 hrs/week, $35/hr, 5 years tenure.
Annual accrual: 152 hours (4 weeks). Total balance after 5 years (assuming none taken): 760 hours = 100 days. Dollar value: 760 × $35 = $26,600. With 17.5% leave loading: $31,255. Realistically you would take leave each year, but this is what's "in the bank" if you didn't.
Part-time, 22.8 hrs/week (60% of full-time), $32/hr, 3 years tenure.
Pro-rata factor: 22.8 / 38 = 0.6. Annual accrual: 152 × 0.6 = 91.2 hours. After 3 years: 273.6 hours. In days (at 7.6 hrs/day for FT): ~36 days, but at 4.56 hrs/day part-time = 60 part-time days. Dollar value: 273.6 × $32 = $8,755; with loading: $10,287.
Shift worker, 38 hrs/week (24/7 hospital), $42/hr, 8 years tenure, leaving the role.
5-week entitlement: 190 hours per year. 8 years × 190 = 1,520 hours total earned. Assume took 4 weeks each year (152 × 8 = 1,216 hrs taken), so balance is 1,520 - 1,216 = 304 hours owed at termination. Payout: 304 × $42 = $12,768; with 17.5% loading (if award provides): $15,002.
For your specific award and entitlements, search the Pay and Conditions Tool at fairwork.gov.au. This calculator is a directional estimate, not legal or financial advice.
This calculator uses current published rates from Australian government and regulator sources. The result is an estimate for general guidance — it does not constitute personal financial advice. For decisions about your circumstances, consult a registered financial adviser, tax agent, or other professional. See editorial standards for how DecisionLab sources and updates its calculator data.