Accrued Annual Leave for Federal Employees

Understanding how annual leave is earned—and how much you can save—plays an important role in planning your time off and preparing for retirement. Annual leave gives federal employees the flexibility to take vacations, rest and recharge, or handle personal and family needs. With thoughtful planning, many employees are able to accumulate a significant balance that can translate into a valuable lump-sum payout when they retire.

How Annual Leave Accrues

Accrual rates are the same for both FERS and CSRS employees, though part-time employees receive prorated amounts. The standard accrual schedule is:

• Less than 3 years of service: 4 hours per biweekly pay period (13 days per year)

• 3 to 15 years of service: 6 hours per pay period (20 days per year)

• 15 or more years of service: 8 hours per pay period (26 days per year)

These leave accrual rules do not impact retirement eligibility or the calculation of your annuity—they solely apply to how much annual leave you earn.

Carryover Limits

The number of hours you can carry into the next leave year depends on your position type, but most GS employees may carry a maximum of 240 hours. Any hours above that limit must be used before the end of the leave year or they will be forfeited.

A “leave year” is defined by OPM as beginning on the first day of the first full biweekly pay period of a calendar year and ending the day before the next leave year begins. Because payroll calendars can vary by agency, employees should confirm the exact dates with their HR office.

Retiring Before the Leave Year Ends

Employees who retire before the leave year concludes will receive a lump-sum payment for all unused annual leave in their account. As long as retirement occurs before the new leave year starts, any hours above the 240-hour carryover cap are not lost—they’re paid out in full. This payment can be especially helpful while waiting for OPM to process the first interim or full annuity payment, a process that can take longer during times of high retirement volume.

For personalized guidance on maximizing your benefits and planning for retirement, consider speaking with a Federal Retirement Consultant (FRC®).