2025 Annual Leave Dates

With strategic planning, accrued annual leave, while not contributing toward retirement eligibility, can be converted into a substantial lump-sum payment upon retirement. It is crucial to understand your annual leave carryover limits and the “use it or lose it” policy to maximize this benefit. Many federal retirees utilize this lump-sum payment to bridge the gap in covering expenses before their full annuity payments begin.

Annual Leave Dates For 2025

As defined by the Office of Personnel Management (OPM), a leave year starts on the first day of the first full biweekly pay period of the calendar year and concludes the day before the next leave year begins. Any accrued annual leave that surpasses the maximum allowable carryover into the following leave year is classified as “use it or lose it”, meaning it must be used within that year or forfeited. The “use it or lose it” date is the last day to schedule any excess leave.

Leave Beginning Date – January 12, 2025

Leave Ending Date – January 10, 2026

Use It Or Lose It Date – November 29, 2025

Most GS employees can carry over a limit of 240 hours (30 days) of unused leave per year. If you’ve planned your retirement for a day prior to the start of the new leave year, you won’t lose any annual leave that’s above the allowed amount. Plus, if you abstain from using any leave in the year you plan to retire, those hours will be added to your carry-over hours, resulting in a handsome lump-sum payment.

Calculating Your Annual Leave Lump Sum

To calculate your lump-sum payment, your agency will take the total hours of accumulated and accrued annual leave and multiply it by your hourly rate of pay, including any additional forms of compensation you would have received during that leave. Since your unused leave is applied as if you were still working, any pay raises that occur before your leave is fully used will be factored in at the increased rate.

Payment Types Factored Into Your Lump-Sum Amount

•   Rate of basic pay
•   Locality pay or other similar geographic adjustment
•   Within-grade increase (if the waiting period is met on the date of separation)
•   Across-the-board annual adjustments
•   Administratively uncontrollable overtime pay, availability pay, and standby duty pay
•   Night differential for FWS employees only (including a portion of the lump-sum period that would have occurred when the employee was scheduled to work night shifts)
•   Regularly scheduled overtime pay under the Fair Labor Standards Act for employees on uncommon tours of duty
•   Supervisory differentials
•   Non-foreign area cost-of-living allowances and post differentials
•   Foreign area post allowances

To ensure your federal retirement plans are on track, contact a Federal Retirement Consultant® who can help you navigate the unique world of federal benefits.