Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
If you work a standard 38-hour week in Australia, understanding how your annual leave accrues (and how to calculate it accurately) makes a big difference to your work-life planning. Whether you’re scheduling a long-overdue holiday, checking that your payslip matches your entitlement, or confirming how much you’ll be paid when you take leave, it helps to know the numbers and the rules behind them.
In this guide, we’ll break down how annual leave works for a 38-hour week, give you simple formulas you can use as a “calculator,” and explain how to handle common scenarios like part-time hours, public holidays, cashing out leave, and leave loading. We’ll also flag where workplace documents and policies play a role, and where it’s worth getting tailored advice so you can feel confident about your entitlements.
How Does Annual Leave Work in Australia?
Most full-time employees covered by the National Employment Standards (NES) accrue 4 weeks of paid annual leave for each year of service. If you’re working a standard 38-hour week, that translates to 152 hours of annual leave per year (4 weeks × 38 hours).
Key points to keep in mind:
- Annual leave accrues progressively based on your ordinary hours of work and accumulates year to year if not taken.
- It accrues when you’re on paid leave (e.g. annual leave or paid personal leave), but generally not during periods of unpaid leave unless an industrial instrument says otherwise.
- Part-time employees also accrue annual leave, pro rata based on their ordinary hours.
- Casual employees do not receive paid annual leave under the NES (they receive a casual loading instead).
If you’re interested in what you should be paid when you take leave (including penalties, allowances and any relevant loading), it’s useful to check how annual leave payments are calculated under your award, enterprise agreement or contract.
How To Calculate Annual Leave For A 38-Hour Week
Here are simple formulas you can use as an “annual leave calculator” for a standard 38-hour week.
1) Annual Accrual
Full-time annual leave entitlement for a 38-hour week = 4 weeks × 38 hours = 152 hours per year.
2) Accrual Per Week, Fortnight and Month
- Per week: 152 ÷ 52 ≈ 2.923 hours of annual leave per week.
- Per fortnight: 152 ÷ 26 ≈ 5.846 hours of annual leave per fortnight.
- Per (average) month: 152 ÷ 12 ≈ 12.67 hours of annual leave per month.
These figures are approximations and your payroll system will usually accrue leave to several decimal places to keep it accurate.
3) Accrual Per Hour Worked (Ordinary Hours)
For a practical hourly rate, use: 152 hours per year ÷ total annual ordinary hours (38 × 52 = 1,976 hours) ≈ 0.076923 hours of leave per ordinary hour worked (about 7.6923% of ordinary hours).
4) Quick Examples
- If you’ve worked 6 months on 38 hours per week: 6 × 12.67 ≈ 76 hours accrued.
- If you’ve worked 10 months on 38 hours per week: 10 × 12.67 ≈ 126.7 hours accrued.
- If you’ve worked 1 year on 38 hours per week: total ≈ 152 hours accrued.
Always check your payslip and employer records. If something looks off, ask payroll to confirm the accrual basis they’re using and whether it aligns with your award or agreement.
5) Pro Rata For Part-Time Employees
Part-time employees accrue 4 weeks of annual leave based on their ordinary weekly hours. For example:
- If you regularly work 20 hours per week, your annual leave accrual is 4 × 20 = 80 hours per year (about 6.67 hours per month).
- For changing rosters, payroll calculates accrual based on the ordinary hours actually worked each pay period.
6) Counting Days Of Leave
Paid annual leave is usually taken in hours and aligned to your ordinary roster. When you book time off, your employer deducts the hours you would normally work during that period (excluding public holidays). If approvals or deadlines reference a set timeframe, it can help to confirm what counts as a Business Day under your contract or policy.
Public Holidays, Shutdowns And Leave Loading
A few common rules often trip people up. Here’s how they usually work in practice for a 38-hour week (subject to your award or agreement):
Public Holidays During Leave
- If a public holiday falls on a day you would normally work during a period of annual leave, that day is not deducted from your annual leave balance.
- You’re paid the public holiday instead (according to your award or agreement). Your annual leave hours decrease only for the non-public holiday days in that period.
Christmas/New Year Shutdowns
- Some businesses shut down for part of the year and may ask staff to take annual leave. Whether this is allowed depends on your award or enterprise agreement.
- If you don’t have enough leave, your award/agreement may let your employer direct you to take leave in advance or take unpaid leave (in limited circumstances). Check the exact terms that apply to you.
Annual Leave Loading
Some awards and agreements provide for annual leave loading (commonly 17.5%) paid on top of your base rate when you take annual leave. Not everyone is entitled to it-it depends on your instrument and contract terms. To understand when loading applies and how it’s calculated, see how annual leave loading works in Australia.
Managing, Requesting And Cashing Out Annual Leave
Most workplaces have processes for requesting leave and reasonable business grounds for approving or declining requests (for example, busy periods or minimum staffing requirements). The more notice you provide, the easier it is to plan around your absence.
Requesting Leave And Approvals
- Use the internal process (HRIS/app/email form) and provide reasonable notice where you can.
- If you and your employer can’t agree, awards and agreements often include dispute resolution steps-check your instrument for the pathway.
- If you have flexibility to swap shifts or adjust rosters, discuss options with your manager to keep operations running smoothly while you’re away.
Cashing Out Annual Leave
Cashing out annual leave is possible in certain circumstances. Generally, a cash-out must be in writing and must not reduce your remaining accrued entitlement below 4 weeks (for award-free employees), with rules varying under different awards and agreements. Get across the guardrails that apply to cashing out annual leave so you can do it properly.
Unpaid Leave And Accrual
Annual leave usually doesn’t accrue during periods of unpaid leave (unless an instrument says otherwise). If you’re considering taking time off without pay, understand how unpaid leave interacts with your entitlements and service-based benefits.
Time Off In Lieu (TOIL)
If your workplace offers TOIL, those hours are separate from annual leave and governed by your award, agreement or policy. TOIL can be handy to manage short breaks without dipping into your annual leave balance. Make sure any TOIL arrangements are documented and consistent with Time Off In Lieu rules.
What Happens To Annual Leave On Termination?
When employment ends, accrued but untaken annual leave is paid out. Depending on your award/agreement and contract history, leave loading may also be included in that payout. Employers have obligations regarding annual leave on resignation, and it’s reasonable for employees to ask when and how that payment will be processed.
Putting It All Together: Practical “Calculator” Scenarios
Here are common scenarios that show the maths in action for a 38-hour week. In each case, assume standard full-time accrual unless noted otherwise.
Scenario 1: Booking A 10-Working-Day Holiday
You take two weeks off and you normally work 7.6 hours per day (38 hours ÷ 5 days).
- Leave deducted: 10 days × 7.6 hours = 76 hours.
- If there’s a public holiday in that period that falls on a day you’d normally work, subtract 7.6 hours for that day from the deduction.
- Payment during leave will follow your award/agreement, including any applicable loading, penalties or allowances.
Scenario 2: You’ve Worked 14 Fortnights (About 6.5 Months)
Accrual per fortnight ≈ 5.846 hours. Over 14 fortnights:
- Total accrued ≈ 14 × 5.846 = 81.84 hours.
- Rounded accrual on payslips may differ slightly due to payroll rounding rules, but should reconcile over time.
Scenario 3: Part-Time At 30 Hours Per Week
Annual leave entitlement per year = 4 weeks × 30 hours = 120 hours.
- Per week accrual ≈ 120 ÷ 52 ≈ 2.308 hours.
- Per fortnight accrual ≈ 120 ÷ 26 ≈ 4.615 hours.
Scenario 4: Shut Down Over The New Year
Your workplace shuts for 7 working days and requests you take annual leave. You normally work 7.6 hours per day.
- Leave deducted: 7 × 7.6 = 53.2 hours (excluding any public holidays in that period).
- If you don’t have enough leave, your options depend on your award, agreement and workplace policy (leave in advance or unpaid leave may apply).
Scenario 5: Taking A Day Off For A Personal Event
If you take one ordinary working day off using annual leave, your balance reduces by your ordinary hours for that day (e.g., 7.6 hours) rather than a fixed “1 day” amount.
Where Your Contract And Workplace Policies Fit In
Your entitlement to annual leave arises from the NES and is shaped by your award or enterprise agreement. However, your contract and workplace policies matter too. They often set out how leave requests work in practice, any advanced notice needed, and how the business manages peak periods or shutdowns. Having a clear Employment Contract and consistent policies helps avoid misunderstandings and keeps leave management fair and transparent for everyone.
If you’re checking your payslip or planning a longer break, it’s completely reasonable to ask HR or payroll how your accrual is being calculated. A collaborative approach goes a long way-especially if your roster or hours have changed and you want to ensure your leave balance reflects that accurately.
Key Takeaways
- For a standard 38-hour week, annual leave accrues at 4 weeks (152 hours) per year-about 2.923 hours per week or 5.846 hours per fortnight.
- Part-time employees accrue annual leave on a pro rata basis (4 weeks of their ordinary weekly hours over a year).
- Public holidays during a period of annual leave are not deducted from your leave balance if they fall on a day you’d normally work.
- Annual leave loading may apply depending on your award or agreement-check how annual leave loading is handled in your workplace.
- You may be able to cash out leave in limited circumstances, but strict rules apply-review the framework for cashing out annual leave before making a request.
- On termination, accrued annual leave is usually paid out, with potential loading depending on your instrument and history of payment.
- Contract terms, policies and your award/agreement shape how leave is requested, approved and paid-keep them handy and ask payroll to clarify any discrepancies.
If you would like a consultation on your annual leave entitlements or help reviewing your employment terms, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








