Sick Leave Payout Calculator

What Is Sick Leave in Australia?

Personal/carer's leave — commonly called sick leave — is paid leave for when you are unwell or need to care for a sick immediate family member. Under the National Employment Standards, full-time employees accrue ten days of paid personal leave per year. Part-time employees accrue personal leave on a pro-rata basis — someone working three days per week accrues six days annually. Casual employees do not accrue paid personal leave but receive a 25% casual loading instead.

Personal leave accrues progressively throughout each year of employment based on ordinary hours worked. Unused personal leave carries over indefinitely while you remain with the same employer — it does not expire at the end of each year like some annual leave policies in other countries. A worker who rarely takes sick days can accumulate substantial leave balances over years of service, though this balance typically cannot be cashed out while still employed.

How Sick Leave Accrual Works

Full-time employees accrue 1/26 of their ordinary hours for each completed year — equivalent to ten days for a standard 38-hour week. Personal leave accrues from the first day of employment, including any probation period. Accrual continues during paid annual leave but generally pauses during unpaid leave. Your payslip or HR system shows your current personal leave balance in hours or days.

Part-time accrual is proportional to hours worked. An employee on 19 hours per week (half of full-time) accrues five days of personal leave per year. Our calculator uses your annual salary and number of sick days to estimate dollar value — for accrual planning, remember that ten days per year is the full-time standard. Multiply by your pro-rata fraction for part-time schedules.

• Full-time accrual: 10 days (76 hours) per year
• Part-time accrual: pro-rata based on ordinary hours
• Unused leave carries forward indefinitely
• Casual employees: no paid sick leave (25% loading applies)

Calculating the Dollar Value of Sick Leave

The dollar value of accrued sick leave equals your daily pay rate multiplied by the number of accrued days. Our calculator derives the daily rate by dividing annual salary by 260 — the standard working days per year used in many Australian payroll calculations (52 weeks × 5 days). On an $85,000 salary, the daily rate is $85,000 ÷ 260 = $326.92. Fifteen accrued sick days have a value of about $4,903.

Some employers calculate leave payouts using a different divisor — 365 calendar days or actual hours worked divided by weekly hours. The 260-day method is widely used for estimates and aligns with common payroll practice. For precise figures, check your employer's payroll policy or award. The calculator also shows the typical annual accrual value — ten days at your daily rate — to illustrate what you earn in personal leave each year as part of your total package.

Is Sick Leave Paid Out When You Leave?

In most cases, accrued personal/carer's leave is not paid out on resignation or redundancy. Unlike annual leave, which must be paid when employment ends, personal leave is intended for use during employment for illness and caring purposes. The Fair Work Act does not require employers to cash out unused sick leave when you leave, and most awards and contracts follow this principle.

Exceptions are rare but exist in some enterprise agreements or long-standing employer policies that allow limited sick leave cash-out. Workers in certain public sector roles may have different rules. When negotiating exit packages, unused sick leave is generally not a bargaining chip — focus on annual leave balances, long service leave, and redundancy entitlements instead. Our calculator shows the theoretical value of your sick leave, which is most useful for planning time off rather than expecting a payout.

Sick Leave vs Annual Leave

Annual leave and personal leave serve different purposes and have different payout rules. Annual leave — twenty days per year for full-time workers under the NES — is for rest and recreation. Unused annual leave must be paid out when employment ends at the employee's base rate of pay. Personal leave is for illness and caring and is generally not cashed out on departure.

Both leave types accrue progressively and carry forward. Annual leave can sometimes be cashed out by agreement while still employed (limited to two weeks per year under the NES). Personal leave cash-out is not permitted under the NES except where an award or agreement specifically allows it. Understanding both balances gives a complete picture of your leave wealth — use our annual leave calculator alongside this tool for full leave valuation.

Using Sick Leave: Rules and Evidence

You can take personal leave when you are not fit for work due to illness or injury, or when you need to care for an immediate family member who is ill or injured. Immediate family includes spouse, de facto partner, child, parent, grandparent, grandchild, or sibling. Notify your employer as soon as practicable — many workplaces require notice before the start of the shift or within a set timeframe.

Employers may request evidence that personal leave was taken for a permissible reason. For a single day, a statutory declaration or self-certification may suffice. For two or more consecutive days, or where the employer reasonably requires it, a medical certificate is standard. Employers cannot refuse personal leave if you provide satisfactory evidence and have an accrued balance. Taking personal leave without a valid reason or falsifying medical certificates can constitute misconduct.

Part-Time and Shift Worker Sick Leave

Part-time employees accrue personal leave on a pro-rata basis matching their ordinary hours. A four-day-per-week worker on $70,000 FTE ($56,000 actual) accrues eight days of personal leave annually. The dollar value of each sick day equals their actual daily pay — $56,000 ÷ 260 × working days fraction, or simply their gross pay for one ordinary day.

Shift workers with variable hours accrue personal leave in hours rather than days. A nurse working 38 hours weekly accrues 76 hours of personal leave per year. When taking leave, payment is based on the hours you would have worked at your ordinary rate, including any applicable shift penalties if your award requires penalty rates during personal leave. Check your award for personal leave payment rules during penalty shift periods.

Sick Leave and Total Package Value

Personal leave is a valuable but often invisible part of your remuneration package. Ten days of paid sick leave on an $90,000 salary represents about $3,462 in annual benefit — money you receive when unwell without losing income. Combined with annual leave ($6,923 for twenty days), paid leave adds roughly $10,400 to the value of a $90,000 package beyond the base salary figure.

When comparing job offers, consider leave policies beyond statutory minimums. Some employers offer additional personal leave, wellness days, or purchased leave schemes. Employer-paid income protection insurance and employee assistance programs complement personal leave entitlements. A lower salary with generous leave and flexibility may outperform a higher salary with restrictive attendance policies — model both scenarios with our calculators.

Using the Sick Leave Payout Calculator

Enter your gross annual salary and the number of accrued sick or personal leave days you want to value. The calculator displays your annual salary, calculated daily rate (salary ÷ 260), total leave payout value, and the dollar value of typical annual accrual at ten days. Use this when planning how much paid time off you have available, evaluating the financial benefit of personal leave in your package, or estimating balances before a career break.

Remember that payout value is theoretical for most departing employees — personal leave is typically not cashed out on resignation. The figure represents what those days are worth if you use them while employed. For annual leave payout estimates on departure, use our annual leave calculator. Combine both tools for a complete leave valuation when negotiating employment terms or planning an exit.

Long-Term Sick Leave and Other Protections

Employees with serious illness may access additional protections beyond accrued personal leave. Workers with a serious medical condition may take unpaid personal leave after exhausting paid balances. The Fair Work Act provides up to two days of unpaid carer's leave per occasion for immediate family emergencies. Workers with disabilities may request reasonable adjustments under anti-discrimination law.

Income protection insurance — sometimes provided by employers — pays a portion of salary during extended illness after a waiting period. Workers' compensation covers work-related injuries regardless of personal leave balances. The government's sickness allowance through Services Australia may support those without sufficient leave who cannot work due to illness. Plan for extended illness by understanding all available protections beyond your accrued sick leave balance.