Annual leave payout on resignation: check the hours, rate and loading

Published by SESAY · 2026-10-07 · General Australian payroll guidance

What to understand first

Unused annual leave is paid out when employment ends. Applicable loading must be included if it would have been payable when the leave was taken. Do not assume that every employee has the same loading percentage or that every leave balance displayed in a system is payable.

Practical checks

• Confirm the final accrued balance, including the last period.
• Identify the applicable payment rate and loading rule.
• Separate annual leave from other leave categories.
• Review withholding separately from the gross entitlement.

Fictional example

Fictional employee Ruby has 76 hours of unused annual leave at an assumed $35 hourly rate. Base leave pay is 76 × $35 = $2,660. If her applicable entitlement is an additional 17.5% loading on that amount, the loading is $465.50 and the gross total is $3,125.50. These assumptions are illustrative, not a universal rule.

Your next step

Ask payroll to explain any difference between the balance on a previous payslip and the final balance. Leave taken or accrued in the final period may account for it. The example excludes tax, long service leave and other exit payments. For a disputed rate or loading, use the relevant instrument and Fair Work guidance rather than applying the example mechanically.

How SESAY can help

SESAY can support leave-balance reconciliation and independent checking of approved final-pay calculations, helping teams explain the result to employees.

Official sources

• Fair Work — Final pay

Sources researched 2026-10-07. Examples are fictional and use stated assumptions. Confirm current rules and your circumstances before acting. This is general information, not individual tax or legal advice. SESAY is independent of the regulators linked here.