Leave liability calculator.
Turn average employee balances into a current leave provision estimate and see where it may head if balances keep growing.
Estimated provision
A transparent directional estimate
Value current balances
Employees × average balance hours × applicable hourly pay gives the direct current leave value.
Add chosen on-costs
The user-supplied on-cost rate is applied to the direct leave value. It is deliberately not hard-coded by country.
Project net growth
Future average balance = current balance + (annual accrual − expected annual usage) × projection fraction.
AASB 119 Employee Benefits identifies paid annual leave as an employee benefit and covers recognition and measurement. This calculator is a simplified scenario model and does not replace that standard or professional advice. See also our leave management ROI guide and accountant resources.
Related tools: leave cost calculator · absenteeism cost calculator · FTE calculator.
Leave provision questions,clearly answered
Balances, on-costs, projections and accounting boundaries explained.
Talk to our team01What is leave liability?
Leave liability is the estimated cost of employee leave already earned but not yet taken or paid. It can include the direct leave payment and employer on-costs, depending on the applicable accounting policy and jurisdiction.
02Why include on-costs?
On-costs represent employer costs attached to leave payments, such as applicable payroll taxes, pension or superannuation contributions, and other obligations. Enter the percentage your finance adviser uses; the calculator does not prescribe one rate.
03How is the projection calculated?
The tool adds net future balance growth: annual accrual hours minus expected annual leave taken, apportioned over the selected months. It then values that projected average balance at the current average rate and on-cost percentage.
04Can this figure be posted directly to the accounts?
No. This is a planning estimate, not an accounting entry. A compliant provision may require employee-level data, probability assumptions, future pay changes, discounting, vesting rules, tax treatment, and review under the relevant accounting standard.