Inputs you will enter
- Annual leave balanceFrom your latest Leave and Earnings Statement.
- Accrual rate4, 6 or 8 hours per pay period, based on your years of service.
- Separation dateTo count the hours you will still earn.
- Grade, step and localityOr type your hourly rate directly.
How we compute it
We add the leave you will earn between now and your separation date to your current balance. Then we multiply total hours by your hourly rate of basic pay including locality, read from OPM's current GS tables (OPM, retrieved 2026-07-05). OPM's rule is that the lump sum is paid at the rate you would have received had you stayed employed through the period the leave covers, so a pay raise that takes effect during that period can raise part of the payment. We flag that case but do not model it.
A worked example
You are a GS-12 step 10 in a locality area with an hourly rate of $55, and you will separate with 240 hours of annual leave. The estimate is 240 x $55 = $13,200 before taxes. Educational estimate on the assumptions shown; your agency payroll office computes the actual payment.
What to do with your result
Check your hourly rate in the GS pay and locality lookup and count down to your date with the retirement countdown. The leave guide covers carryover, use-or-lose dates and how sick leave differs.
Timing your last day around the leave year and taxes is a real decision.
FFEBA is an education organization. If you want someone to look at your own numbers, we can match you with a Federal Retirement Consultant (FRC), a professional trained on federal benefits. The FRC designation is listed with FINRA. The first review is free, nothing is booked until you choose a time, and you are never obligated to work with anyone we introduce. Get matched with an FRC.
Questions about this calculator
Do federal employees get paid for unused annual leave when they retire?
Yes. When you separate, your agency pays a lump sum for your unused annual leave, at the hourly rate you would have earned had you stayed on the rolls, including locality pay. Unused sick leave is not paid out; it can count toward your annuity computation instead.
Does the annual leave payout count toward my high-3?
No. The lump-sum payment is not basic pay for retirement purposes, so it does not raise your high-3 and does not add service time.
Is the lump sum taxed?
Yes. It is taxed as wages in the year you receive it. Retiring in early January can move the payment into a year with less other income, which is one reason some employees pick that timing.
How much annual leave can I carry over?
Most employees can carry over up to 240 hours from one leave year to the next; leave above the limit is use-or-lose. Some positions, such as Senior Executive Service and overseas employees, have higher limits.
Reviewed by the FFEBA education team. Last reviewed October 2026.
Sources
- U.S. Office of Personnel Management, pay and leave: lump-sum payment for accumulated and accrued annual leave
- U.S. Office of Personnel Management, 2026 GS pay tables, retrieved 2026-07-05
Every government figure on this page carries its source and retrieval date. Worked examples are educational estimates on the assumptions shown, not a projection of any person's benefit. FFEBA is an education organization, not a financial advisor.
