Leave Value Calculator

Are employers required to pay out unused leave when I resign?

It depends on the country and your employment contract. In Australia, unused annual leave must always be paid out on termination under the Fair Work Act National Employment Standards — this is a non-negotiable statutory right regardless of whether you resign or are dismissed. In the UK, accrued untaken statutory leave must be paid on termination; employers cannot contract out of this right. In India, encashment rules vary by state and employer — many private sector employers offer leave encashment, but there is no single national mandate. In the US, it depends entirely on state law and company policy; California, Colorado, and several other states mandate payout, while others allow employers to forfeit unused leave.

Why are 250 working days used as the basis?

250 working days is the standard approximation for full-time employees working five days a week: 52 weeks multiplied by 5 days equals 260 gross working days, minus approximately 10 public holidays equals 250 net working days per year. This gives a consistent and comparable daily rate across countries. Your actual employer may use a slightly different figure — some use 260 days (ignoring public holidays) or even 261 (accounting for a 52-week and 1-day year). Using your employer's specific figure will give a more precise result.

Can I take unused leave as cash instead of days off?

Most countries do not allow employees to "sell" statutory leave back to their employer while still employed — statutory annual leave is intended to be taken as genuine rest for health and wellbeing reasons. The UK Working Time Regulations explicitly prohibit employers from paying in lieu of statutory leave except on termination. Australia similarly requires leave to be taken. The exception is termination, where unused accrued leave is typically paid out. Some employers voluntarily offer leave encashment or "buy back" schemes for leave above the statutory minimum; check your employment contract or HR policy to see if this applies in your case.

How do I calculate my accrued leave if I resign mid-year?

Annual leave accrues proportionally throughout the year. If you are entitled to 20 days of annual leave per year and you resign after working 9 months (75% of the year), you will have accrued 15 days (20 × 75%). Subtract any leave already taken to find your remaining unused balance. For example, if you took 5 days during those 9 months, you have 10 unused days payable on termination. Use the daily rate from this calculator (annual salary divided by 250 working days) multiplied by those 10 days to find the cash value.