Annual Leave Calculator

This annual leave projection calculator will allow you to forecast your future annual leave balances. This will aid in decision making around potential vacation times as well as extended leave periods. Calculating annual leave future balances is pinned on the number of hours you work per week and your current holiday pay rate (usually 8%) which calculates the accumulated hours of annual leave per week for extrapolation.

Current Annual Leave Balance

Current Number Of Hours In Paid Workday

hours

Current Holiday Pay Rate (NZ usually = 8%)

%

Current Number of Hours In Standard Work Week

hours

Future Periods To Extrapolate Annual Leave Balance To

Annual Leave Hours Accumulated Per Week of Work

hours

Annual Leave Balance After Timeframe in Hours

work hours

Annual Leave Balance After Timeframe in Days

work days

Annual Leave Balance After Timeframe in Weeks

work weeks

In New Zealand, annual leave, also known as paid holidays or vacation time, is a significant aspect of the employment relationship. It provides employees with a chance to rest and rejuvenate, maintaining a healthy work-life balance. Annual leave entitlements are governed by the Holidays Act 2003, which sets out minimum standards for employees working in New Zealand.

Basic Annual Leave Entitlements

Under the Holidays Act 2003, all employees, whether permanent, part-time, or casual, are entitled to a minimum of four weeks (20 working days) of paid annual leave after completing one year of continuous employment with the same employer. These leave entitlements apply to employees working in both the public and private sectors.

Accruing Annual Leave

Employees start accruing annual leave from their first day of employment. However, they are only eligible to take their annual leave after completing one year of continuous service with the same employer. The leave year generally starts on the employee's anniversary date, which marks the completion of one year of service.

If an employee changes jobs, their annual leave entitlements do not transfer to the new employer, and they begin accruing leave anew from the first day of employment with the new organization.

Calculating Annual Leave

Calculating annual leave can be slightly complex, as it depends on the employee's work pattern, hours of work, and annual leave taken during the year. Here are some factors to consider when calculating annual leave:

  1. Work Pattern: Determine the employee's work pattern, whether it is full-time, part-time, or casual. This information is crucial for calculating annual leave entitlements accurately.

  2. Hours of Work: Calculate the employee's average weekly hours over the 12 months preceding the end of the leave year. This calculation considers any changes in the employee's work schedule or hours throughout the year and is necessary for determining the total leave entitlement in hours.

  3. Leave Taken: Keep track of the annual leave taken by the employee during the leave year. Deduct this from the total leave entitlement to determine the remaining balance.

  4. Pay Rate: Determine the employee's gross pay rate. This rate is used to calculate the employee's annual leave pay.

  5. Public Holidays: If a public holiday falls within an employee's annual leave period, the day should not be counted as annual leave. Instead, the employee is entitled to be paid their relevant daily pay for that public holiday.

Once these factors are determined, employers can calculate an employee's remaining annual leave balance and the payment owed for any untaken annual leave at the end of the leave year.

Annual Leave Payment

When an employee takes annual leave, they must be paid the higher of either their ordinary weekly pay (the pay they would have received if they had worked during the leave period) or their average weekly earnings over the previous 52 weeks. This calculation ensures that employees receive fair compensation while on leave, particularly if they have worked overtime or received bonuses during the year.

Carrying Over Annual Leave

Employees are allowed to carry over a maximum of one week of their annual leave entitlement to the following leave year, provided they have a written agreement with their employer. Any remaining untaken annual leave above this limit must be paid out to the employee at the end of the leave year.

Cashing Out Annual Leave

After completing one year of continuous employment, employees may request to cash out a maximum of one week of their annual leave entitlement each year. Employers cannot force employees to cash out their leave, and employees can only make this request in writing.

Termination of Employment

When an employee's employment is terminated, they are entitled to be paid for any untaken annual leave accrued during their employment. The payment should be calculated based on the employee's gross pay rate at the time of termination.


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