Annual Leave Calculator

This calculator projects your New Zealand annual leave balance forward in time, helping you plan holidays or extended leave well ahead of when you need to book anything. You enter your current annual leave balance in hours or days, the number of hours in your usual paid workday, your holiday pay accrual rate (typically 8 percent under the Holidays Act 2003), your standard weekly hours, and how far ahead you want to look, in weeks, months or years. From these figures the calculator works out the annual leave hours you accumulate per week of work, then projects your balance forward to give your future annual leave balance in hours, in working days and in working weeks. This lets you see, for example, whether you will have enough banked leave to take a month off next year, or how quickly your balance rebuilds after a big holiday. It suits weekly, fortnightly and variable-hour employees, since you set your own workday length and weekly hours. Keep in mind that your actual entitlement depends on your employment agreement and average hours worked, and that annual leave only becomes a legal entitlement after 12 months of continuous employment with the same employer. This tool gives a straightforward projection from the figures you enter, so treat the result as an indicative planning estimate rather than a formal payroll calculation.

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Updated April 2026  Current rates and legislation applied.

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 of paid annual leave after completing one year of continuous employment with the same employer. For an employee working five days a week, four weeks equals 20 working days. For part-time or variable-hours employees, the entitlement is still four weeks, but the number of days will reflect their actual working pattern. These entitlements apply to employees in both the public and private sectors.

When Annual Leave Becomes Available

Annual leave becomes an entitlement on the employee's 12-month anniversary with the same employer. Payroll systems often show an estimated leave balance before this point, but the legal entitlement to take annual holidays does not arise until 12 months of continuous service is reached. The leave year starts on the employee's anniversary date each year.

If an employee changes jobs, their annual leave entitlement does not transfer to the new employer. A fresh 12-month qualifying period begins from the first day with the new employer.

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

Under the Holidays Act 2003, there is no cap on how much annual leave an employee can carry over. Untaken leave accumulates indefinitely and remains owing until it is taken, cashed up (at the employee's request, up to a maximum of one week per year), or paid out when employment ends. Employers cannot force employees to take leave or pay out unused leave above any threshold at year end.

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 out for any untaken annual leave they have not yet taken. The payment must be calculated at the greater of their ordinary weekly pay or their average weekly earnings over the previous 52 weeks.

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