Understanding leave accrual
Leave accrual in Australia works progressively - employees accumulate leave entitlements based on each hour worked, rather than receiving a lump sum at the start of each year. This means employees can access some leave soon after starting employment, and their balance grows throughout the year.
Progressive accrual
- Starts from day one
- Builds based on hours worked
- Available as it accrues
- Carries over year to year
What accrues
- Annual leave (4 weeks)
- Personal leave (10 days)
- Long service leave
- Award-specific leave
Leave accrual rates
Standard accrual rates for full-time employees under the NES:
Full-time accrual (38-hour week)
Calculating leave accrual
- Per hour method: Annual leave accrues at 4/52 of ordinary hours
- Part-time: Pro-rata based on ordinary hours (e.g., 20 hours = 50%)
- Shift workers: May accrue 5 weeks if covered by award provisions
- Personal leave: 10 days based on ordinary hours pattern
Leave accrual calculation
For a full-time employee: Annual leave accrues at approximately 0.0769 hours per ordinary hour worked (4 weeks ÷ 52 weeks = 7.69%). So working 38 hours earns about 2.92 hours of annual leave.
When accrual pauses
Accrual continues during
- Paid annual leave
- Paid personal/carer's leave
- Paid compassionate leave
- Public holidays
Accrual typically pauses during
- Unpaid parental leave
- Extended unpaid leave
- Workers' compensation (varies)
- Leave without pay
Common leave accrual mistakes
Withholding leave until probation ends
Leave accrues from day one of employment. While employers may restrict taking leave during probation, it still accumulates and must be available afterward.
Calculating part-time incorrectly
Part-time leave accrual must be based on actual ordinary hours worked, not a flat percentage. A change in hours should adjust accrual rates.
Not tracking accrual accurately
Manual tracking often leads to errors. Use leave management software to automatically calculate accrual based on hours worked.
Key takeaways
Accurate leave accrual tracking is essential for compliance and employee satisfaction. Understanding that leave accrues progressively from day one helps both employers and employees manage expectations and plan leave effectively.
RosterElf's leave management automatically calculates leave accrual based on hours worked, showing real-time balances and ensuring accurate entitlement tracking.
