Can You Cash Out Annual Leave? The Rules and What 2 Weeks Is Worth
When you can swap annual leave for pay under the Fair Work rules, the 4-week minimum balance, and the value of 10 days at three hourly rates.
By the MoneyBackKit AU team · Updated 28 October 2026 · 2 min read
Most full-time employees get 4 weeks of paid annual leave a year. You can't simply swap leave for money whenever you like: cashing out is allowed only in certain cases, and you must keep a minimum balance.
The rules
- If an award or enterprise agreement covers you, it must allow cashing out; most awards do, with limits.
- Under awards, you can usually cash out no more than 2 weeks in any 12 months.
- Your remaining balance must be at least 4 weeks after cashing out.
- Each cash-out needs a separate written agreement signed by you and your employer.
- You must be paid at least what you'd have got for taking the leave, including any leave loading your award gives.
- An employer can't force or pressure you to cash out leave.
What 2 weeks (10 days) is worth
| Your rate | Base pay | With 17.5% leave loading |
|---|---|---|
| $30.00 an hour | $2,280 | $2,679 |
| $40.00 an hour | $3,040 | $3,572 |
| $55.00 an hour | $4,180 | $4,912 |
Steps
- Check your balance on your payslip and that at least 4 weeks would be left.
- Check your award's cashing-out clause on the Fair Work website.
- Put the request in writing: number of hours, the payment and the date.