The 38-hour standard week sits at the centre of how Fair Work calculates leave entitlements for most Australian employees, and yet plenty of payroll queries come down to a single recurring confusion: how many hours of annual leave should I actually have by now?
The answer isn’t complicated once you see the formula, but employer systems don’t always make it transparent. Payslips show a leave balance in hours, but the methodology behind it — how fast it’s accruing, whether it includes the right number of weeks, whether loading should be applied — often isn’t explained anywhere. This calculator makes the maths visible.
Leave Accrual for 38-Hour Employees: The Exact Numbers
Under the National Employment Standards, a full-time employee on a 38-hour week accrues four weeks of annual leave per year. Four weeks × 38 hours = 152 hours per year. Divide by 52 weeks and you get 2.923 hours of leave per week, or 0.4167 hours per day worked (on a 5-day week).
Per pay period:
- Weekly: 2.923 hours
- Fortnightly: 5.846 hours
- Monthly: 12.667 hours
These are the numbers your payroll system should be accruing. If your payslip shows something materially different from these figures, it’s worth querying — either you’re on a different entitlement (shift worker 5-week rate, for instance), or there’s an error.
The Formula Used in This Calculator
Annual leave accrued = (Days of service ÷ 365.25) × (Weeks’ entitlement × 38)
Example: started 15/03/2022, calculating on 15/09/2024. That’s 914 days, or 2.501 years. Multiply by 152 hours (4 weeks × 38): 2.501 × 152 = 380.2 hours accrued. If 114 hours have been taken (three weeks), the balance is 266.2 hours — exactly seven weeks. At $35/hour with no loading, the payout value is $9,317.
The calculator uses 365.25 days per year (not 365) to account for leap years, which gives a marginally more accurate result over multi-year periods. The difference is about 0.07% — small, but worth getting right.
Shift Workers and the 5-Week Rate
Eligible shift workers — defined under the NES as employees who are regularly rostered to work on Sundays and public holidays — are entitled to five weeks of annual leave instead of four. On a 38-hour week, that’s 190 hours per year, or 3.654 hours per week of accrual. This is not the same as an employee who occasionally works a Sunday; the roster must regularly include these days as a pattern of work. If you’re unsure whether you qualify, check the Fair Work annual leave guidance.
Leave Loading, Payout on Termination, and Common Errors
Annual leave loading (typically 17.5%) is added to leave pay under some awards and agreements. It originated as compensation for missing overtime during the leave period. It’s not universal — if your award or contract doesn’t mention it, you’re not entitled to it. When it does apply, loading is calculated on the ordinary rate only, not on an inflated or overtime-inclusive rate.
On termination, all unused annual leave must be paid out regardless of whether the employee resigned or was dismissed. This is a statutory entitlement under the Fair Work Act, not a discretionary payment. The payout is based on the ordinary rate at the time of termination — not the rate when leave was accrued. A pay rise before termination increases the payout value of accumulated leave.
One error that appears surprisingly often: employers deducting leave for unpaid leave periods. Under the NES, annual leave does not accrue during periods of unpaid leave (with some exceptions, like unpaid parental leave, which has its own rules). If your employer has continued accruing leave through an unpaid leave period, they’ve done you a favour — but it’s not required. If they’ve deducted from accrual during paid leave, that’s wrong.
If you need to calculate leave entitlements for a 40-hour working week rather than 38, the annual leave calculator for 40-hour week employees handles that variation. If you’re in WA and need state-specific guidance, the Western Australia annual leave calculator covers the relevant rules.
FAQs
How many hours of annual leave do I get on a 38-hour week?
A full-time employee on a standard 38-hour week accrues four weeks of annual leave per year under the National Employment Standards. Four weeks × 38 hours = 152 hours of annual leave per year. Eligible shift workers on a 38-hour week accrue five weeks, which is 190 hours per year.
How fast does annual leave accrue on a 38-hour week?
Annual leave accrues at 2.923 hours per week for standard employees (152 hours ÷ 52 weeks). On a fortnightly pay cycle that’s 5.846 hours per pay period, and on a monthly cycle it’s approximately 12.67 hours. Shift workers on the 5-week entitlement accrue 3.654 hours per week.
Does leave accrue from the first day of work?
Yes. Under the NES, annual leave accrues from the first day of employment. There’s no qualifying period before accrual begins. However, some awards and enterprise agreements specify how much notice must be given before leave can be taken, or require a certain period of service before taking leave — these are restrictions on taking leave, not on accruing it.
What happens to annual leave when I resign on a 38-hour week?
Your employer must pay out all accrued but untaken annual leave in your final pay when you resign. The payout is calculated at your ordinary time rate (plus any applicable leave loading) on your balance of hours at the time of termination. Annual leave cannot be withheld or forfeited on resignation under the Fair Work Act.
Is annual leave calculated on 38 hours or contracted hours?
For a full-time employee contracted for 38 hours per week, annual leave is calculated on 38 hours. If your contract specifies a different number of ordinary hours (say, 40 hours), your leave entitlement is calculated on those contracted ordinary hours instead. The four-week entitlement means four weeks of your ordinary working hours — not a fixed 152-hour figure for everyone.
Can my employer make me take annual leave?
Yes, in certain circumstances. If your leave balance is considered excessive (typically more than 8 weeks of accrued leave), an employer can direct you to take annual leave with reasonable notice. The exact notice period depends on your award or enterprise agreement. Outside of an excessive balance situation, employers cannot compel employees to take leave without agreement.
Does annual leave accrue while I’m on annual leave?
Yes. Periods of paid annual leave count as service, so leave continues to accrue during a period of leave. A three-week holiday doesn’t just cost three weeks of leave balance — you also earn back 2.923 hours × 3 weeks = 8.77 hours of new accrual while you’re away. It’s a small offset, but it’s real.
What is the difference between annual leave hours and annual leave days?
Annual leave hours is the total leave balance expressed in hours worked, which is useful for employees who work variable daily hours. Annual leave days converts that balance to working days — typically by dividing the hour balance by your ordinary daily hours. For a 38-hour, 5-day week, each day is 7.6 hours. So 38 hours of leave = 5 working days.