What Is a Leave Payout?

A leave payout is the cash value of unused annual leave (vacation days) paid to an employee when they leave a job — whether by resignation, termination, or redundancy. If you've accrued 12 unused leave days and earn $85,000 a year, your daily rate is $85,000 ÷ 260 = $326.92, and your leave payout is 12 × $326.92 = $3,923, paid on top of your final salary and any notice pay. This calculator converts your leave balance into dollars instantly.

How Leave Payout Is Calculated

The 260 divisor is standard in most countries (5 working days × 52 weeks). Some payroll systems use 261 or 261.5 — a minor rounding difference. The accrual calculation shows how many days you've earned year-to-date, which is useful for checking your payslip balance or estimating leave before your employment anniversary.

Leave Payout Rules by Country

• Australia: all accrued annual leave must be paid out on separation under the Fair Work Act, regardless of reason
• United Kingdom: statutory leave that has accrued must be paid out; contractual leave above statutory minimum depends on your contract
• United States: no federal law requires leave payout — it's state-dependent. California, Colorado, and Montana mandate payout; other states don't
• Canada: most provinces require payout of accrued vacation pay on termination
• Always check your specific contract and jurisdiction; some contracts have "use it or lose it" clauses that may affect accrued balances

How to Use This Calculator

Enter your annual salary and unused leave days for an instant payout figure. Optionally add your annual leave entitlement and weeks worked this year to see how many days you've accrued year-to-date — useful for checking whether your HR balance is correct. The calculator also shows your daily and weekly rate, handy for understanding any hourly or pro-rata pay calculations in your final paycheck.

Worked Example

An employee earns $85,000 per year and has 12 unused annual leave days. Daily rate: $85,000 ÷ 260 = $326.92. Leave payout: 12 × $326.92 = $3,923. With 20 days annual entitlement and 28 weeks worked, accrued leave this year: (20 ÷ 52) × 28 = 10.77 days, worth $3,521. Their payslip shows 12 days total — consistent with carrying over some leave from the prior year.

Maximise Your Final Pay

Your leave payout adds to your final paycheck alongside your notice pay — calculate both with the notice period calculator. If your leave payout pushes your total income for the year significantly, check the tax implications with the bonus tax calculator (lump sums are often withheld at supplemental rates). And for your first days in the new role, the take-home pay calculator shows what your new salary nets after tax.

Frequently Asked Questions