How to calculate annual leave in Australia

Posted by Damien on Aug 7, 2015

The quickest way? Take advantage of the free Annual Leave Calculator from Bindle. Want to know more about how the calculations work? Read on.

How much annual leave am I entitled to?

Paid annual leave is one of the 10 minimum entitlements of Australian workers under the National Employment Standards.

All full-time workers are guaranteed a minimum of 4 weeks paid annual leave. If you’re a shift worker you may be entitled to 5 weeks.

How do I accrue annual leave?

Annual leave accrues gradually throughout the year. You’re entitled to accrue annual leave from the day you start work, regardless of employment probation periods.

By law, any unused leave rolls over from year to year.

You don’t accrue annual leave when you’re on unpaid leave.

How do I work out how much annual leave I’ve accrued?

First let’s go through some numbers we will need.

  1. The NES considers a full-time work week to be 38 hours.
  2. A normal working day is therefore 7.6 hours (38 hours / 5 days).
  3. 4 weeks annual leave equals 20 days, (5 days × 4 weeks).
  4. Every calendar day you accumulate 0.416438356 hours of leave (20 days × 7.6 hours / 365 days).

Yes, you accumulate less than half an hour of annual leave per day. Depressing, isn’t it? Let’s call this the "accumulation rate".

Two formulas give us your annual leave entitlement in hours and days.

Hours accumulated = Calendar days employed × Accumulation rate

Days accumulated = Calendar days employed × Accumulation rate / 7.6

Let’s say you’ve worked hard for 9 months and need some time off. All you have to do is plug in the numbers.

9 months is around 274 calendar days (yes, we counted)

274 days × 0.416438356 = 114 hours accumulated

274 days × 0.416438356 / 7.6 = 15 days accumulated

If you work part-time, you need to adjust the accumulation rate like this.

0.416438356 × Average days worked per week / 5

For example, if you work 3 days per week your accumulation rate is calculated as follows.

0.416438356 × 3 / 5 = 0.2498630136

Easier ways, by Bindle

Although these formulas were all brilliantly explained, we strongly recommend putting your calculator back in your pocket and taking a look at our Annual Leave Calculator.

To make sure you always have correct leave balances for all of your staff, check out Bindle itself.

As well as calculating everyone’s balances, Bindle shows you who’s off when, allows your staff to request leave on their phones and makes approving requests a cinch for managers. All this costs only $1.90 USD per person per month (plus GST for companies operating in Australia).

Try Bindle for free
Better than spreadsheets &
email for managing staff time off.
Free set up. Awesome support.
No credit card required.

Established 2014. Made with ☕️ and the occasional 🍺 in California and the Blue Mountains of New South Wales, Australia.

© 2020 Bindle Software
Stock photos by Freepik