According to the OPM, a leave year begins on the first day of the first full biweekly pay period in a calendar year and it ends on the day immediately before the first day of the first full biweekly pay period in the following calendar year. “Use or lose” annual leave is the amount of unused accrued annual leave that exceeds your maximum carry over into the next leave year. For 2023, mark your calendar with the following leave dates:
- Leave Beginning Date: January 01, 2023
- Leave Ending Date: January 13, 2024
- Use It or Lose It Date: December 02, 2023
It’s important to understand how your annual leave is accrued and how much you can carry over each year because, when you retire, you’ll be paid a lump sum for the balance of annual leave in your leave account.
“Keep in mind that the rules for crediting leave accrual do not affect crediting toward your retirement eligibility or calculation of retirement benefits.”
Annual Leave Accrual Rules
Whether you’re a FERS or CSRS participant, the accrual rules are the same (for part-time workers, the following amounts are prorated according to hours worked):
- With fewer than three years of service, you earn 4 hours per biweekly pay period (13 days a year).
- Between 3 and 15 years of service, 6 hours per pay period (20 days a year).
- Once you reach 15 years of service, you earn 8 hours per pay period (26 days a year).
Keep in mind that the rules for crediting leave accrual do not affect crediting toward your retirement eligibility or calculation of retirement benefits.
Annual Leave Carry Over Rules
The amount of annual leave you can carry over from one leave year to the next depends on your employment category:
- GS and Wage Grade employees can carry over a maximum of 240 hours (30 days).
- Overseas employees can carry over 560 hours (45 days).
- Postal Service bargaining unit employees can carry over 440 hours (55 days).
- Postal Service Executive and Administrative Schedule employees can carry over 560 hours (70 days).
- Senior Executive Service employees have a 720 hour limit (90 days).
How The Amount Of Your Annual Leave Lump Sum Is Calculated
To determine the amount of your lump sum payment upon retirement, your agency will multiply the number of hours of accumulated and accrued annual leave by your hourly rate of pay, plus other types of pay you would have received while on annual leave. What’s not included in Basic pay are any bonuses, allowances, as-needed overtime, holiday pay and certain differentials.
