Fair Work Act 2009 · NES aligned · Full-time & part-time

Pro-Rata Annual Leave Calculator

Calculate the exact annual leave you have accrued for any period of service — full-time or part-time, including the payout owed on resignation or termination.

NES accrual formula Full-time & part-time Payout on termination Instant · No signup

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Hours of annual leave used during this period
$
Min wage is $24.10/hr from 1 Jul 2025
Accrued leave balance
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Days worked
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Accrued (hours)
Accrued (days)
Termination payout estimate
Balance (hours)
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Base payout
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Gross payout
Payout is gross (before tax). Tax on unused leave is withheld under ATO Schedule 7 — use the Leave Payout Tax Calculator for the after-tax figure.

How pro-rata annual leave is calculated

The National Employment Standards accrual formula, expressed transparently in three steps.

1

Time worked as a fraction of a year

Divide the number of calendar days between your start and end date by 365 to get the fraction of a year you have worked.

days worked ÷ 365
2

Multiply by the full-year entitlement

Multiply that fraction by 4 weeks (the NES full-year entitlement), then by your ordinary hours per week to get hours accrued.

fraction × 4 × hours/week
3

Deduct leave already taken

Subtract any annual leave you have already taken during this period to get your current remaining balance.

accrued hours − hours taken

What is pro-rata annual leave?

Under the National Employment Standards (NES), all permanent employees — full-time and part-time — accrue 4 weeks of paid annual leave per year, from the very first day of employment. Because accrual is continuous, at any point during the year an employee is entitled to the fraction of 4 weeks that corresponds to the time they have actually worked. That fraction is called their pro-rata annual leave entitlement.

The term “pro-rata” simply means “in proportion to.” An employee who has worked half a year is entitled to half of 4 weeks (2 weeks) of leave. An employee who has worked three months is entitled to one quarter of 4 weeks (1 week), and so on.

Key rule: Pro-rata annual leave must be paid out on termination of employment — regardless of the reason (resignation, redundancy, dismissal or retirement). This is a statutory entitlement under section 90 of the Fair Work Act 2009.

The pro-rata formula

The calculation the Fair Work Act uses is based on calendar days, not just working days:

Accrued hours = (calendar days worked ÷ 365) × 4 × ordinary hours per week

Worked example — full-time employee, 9 months service

Jordan — 38hr/week, started 1 Jan 2026, resigning 1 Oct 2026

Calendar days worked273 days
Fraction of year273 ÷ 365 = 0.7479
Leave accrued (hours)0.7479 × 4 × 38 = 113.68h
Leave taken during period40h (1 week)
Remaining balance to be paid out73.68h = $2,357.76 gross

Worked example — part-time employee, 6 months service

Sam — 20hr/week part-time, started 1 Jan 2026, resigning 1 Jul 2026

Calendar days worked181 days
Fraction of year181 ÷ 365 = 0.4959
Leave accrued (hours)0.4959 × 4 × 20 = 39.67h
Leave taken during period0h
Balance (= 2 weeks at part-time hours)39.67h

Full-time vs part-time: the key difference

The NES entitlement is 4 weeks per year for both full-time and part-time employees, but a “week” means ordinary hours in that week. A full-time employee working 38 hours accrues 4 × 38 = 152 hours per year. A part-time employee working 20 hours accrues 4 × 20 = 80 hours per year. Both get the same number of weeks off — the hours just differ because their weeks are shorter.

Hours per weekAnnual entitlement (hours)Pro-rata per monthPro-rata per fortnight
38 (standard full-time)152 hours~12.67h~5.85h
40160 hours~13.33h~6.15h
32 (4-day week)128 hours~10.67h~4.92h
25 (part-time)100 hours~8.33h~3.85h
20 (part-time)80 hours~6.67h~3.08h
15 (part-time)60 hours~5.00h~2.31h

When is pro-rata leave paid out?

Under section 90 of the Fair Work Act 2009, all unused accrued annual leave must be paid out on termination — this includes any pro-rata amount for a partial year. This entitlement applies regardless of:

  • Whether the employee resigned, was made redundant, or was dismissed
  • How long the employee has worked (even just a few weeks earns some leave)
  • Whether they gave proper notice

The payout is calculated at the employee’s base rate of pay, or their ordinary rate if higher (e.g. shift workers who ordinarily receive a shift loading). Leave loading of 17.5% may also apply if required by the relevant modern award or enterprise agreement — check your award.

Tax on the payout is withheld under ATO Schedule 7, which applies marginal rate averaging rather than taxing the lump sum at your highest marginal rate. Use the Annual Leave Payout Tax Calculator to estimate the after-tax amount.

Does pro-rata leave apply to casual employees?

No. Casual employees do not accrue annual leave under the NES. Instead, the casual loading (typically 25%) is paid on each hour worked in lieu of leave entitlements including annual leave, personal/carer’s leave, and notice. Only permanent (full-time or part-time) employees accrue annual leave.

Frequently asked questions

Common questions about pro-rata annual leave accrual and payout in Australia.

How is pro-rata annual leave calculated in Australia?

Divide the number of calendar days worked by 365 to get the fraction of a year worked, then multiply by 4 (weeks per year entitlement) and by your ordinary hours per week. For example, 6 months on a 38-hour week: (182 ÷ 365) × 4 × 38 = 75.6 hours accrued.

Do you get pro-rata annual leave when you resign?

Yes. Under section 90 of the Fair Work Act 2009, all unused accrued annual leave — including any pro-rata portion for a partial year — must be paid out when employment ends for any reason, including resignation.

How do I calculate pro-rata leave for a part-time employee?

Exactly the same formula as full-time: (days worked ÷ 365) × 4 × ordinary hours per week. A part-time employee on 20 hours per week for 6 months accrues (182 ÷ 365) × 4 × 20 = 39.8 hours — which is 2 weeks at their part-time hours, proportionally the same as a full-time employee.

Is pro-rata annual leave paid out on termination?

Yes — all of it. Under the Fair Work Act, every hour of accrued annual leave (including any pro-rata partial-year amount) must be paid out when employment ends, regardless of why. Leave loading of 17.5% may also apply depending on your award or agreement.

Do casual employees get pro-rata annual leave?

No. Casual employees receive a casual loading (typically 25%) in lieu of leave entitlements. Only permanent full-time and part-time employees accrue annual leave under the NES.

How much is the annual leave payout taxed?

Tax on unused leave payout is withheld under ATO Schedule 7, which uses a marginal rate averaging method — generally producing a lower withholding rate than if the lump sum were taxed at your top marginal rate. Use the Annual Leave Payout Tax Calculator for an estimate.

What if my employer refuses to pay out my pro-rata leave?

Refusing to pay out accrued annual leave on termination is a breach of the National Employment Standards under the Fair Work Act 2009. You can lodge a complaint with the Fair Work Ombudsman on 13 13 94, who can investigate and pursue recovery on your behalf.

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