Eligible employees are entitled to paid vacation leave each year. The amount of vacation leave each employee receives is determined by length of state service.

Eligibility Requirements

  • Eligible employees may begin to use vacation accruals after six months of continuous state employment; additionally:
    • Previous faculty, staff, student, and wage employment with the state will count toward this requirement;
    • State employees are required to satisfy the continuous six month requirement only once in his/her employment career with the state;
    • Employees may begin to use vacation leave on their true continuous six month anniversary. Example: an employee who begins state employment on January 15 may begin to use his/her available vacation leave on July 15.
  • Students holding positions for which student status is a requirement for employment are not eligible for vacation leave.

General Information

  • A supervisor may deny a request to use vacation leave if granting that leave will place an unreasonable burden on the department or work area.
  • Previous employment with independent school districts and junior colleges will not count for purposes of leave accrual rate or vacation leave transfer.
  • Employees who are on leave on the first workday of a month may not take vacation leave accrued for that month until the employee returns to duty.
  • Accrued vacation leave is earned based on years of total state employment; you may review vacation accrual rates here.
  • Special accrual rates for return-to-work retirees will apply; you may review accrual rates for returning retirees here.

Paid Leave Received From Or Transferred To Another State Agency

New Texas A&M employees with prior state employment or departing Texas A&M employees who transfer to another state agency may have their sick and/or vacation leave transferred to their new positions where appropriate.

Administrators: You may use the forms below to validate the number of hours to be transferred or received.

Leave Transfer Out Form:
Use this form to validate leave hours transferred out to your former employee's new state agency.
Leave Transfer In Form:
Use this form to validate hours received from your new employee's prior state employer.

Vacation Leave Upon Termination of Employment

  • Upon termination or separation from the University, an employee who has completed six months of continuous service is entitled to a lump-sum for all eligible unused vacation time. 
  • Employees who are in a non-leave-accruing position and are leaving or retiring from the University with a balance of previously earned vacation hours in a leave-eligible position will be compensated for those hours at the rate of pay in the last position held that the accrued vacation hours were earned (Texas Government Code 661.063[b]). 
    • The lump sum vacation payment is taxed at the federal withholding supplemental rate of 22% plus the social security rate of 6.2% and the Medicare rate of 1.45% (total 29.65%) based on IRS guidelines.  Those rates are applicable for employees whose YTD wages, including the vacation payment, are below $168,600 for 2024 (up from 160,200 for 2023). The Social Security wage base increases each year.   
    • There are other factors that come into play for YTD wages above that amount.  Please consult a tax advisor if more info is needed regarding taxes on a lump sum payout. 
    • Calculation of holiday hours to be included on the lump sum payout begins the day after the last day worked in the eligible position and goes forward in time to include any holidays falling within the time frame of the employee’s available vacation hours. 
    • The HR Generalist in your HUB prepares your lump sum payout and sends to Payroll for processing. 
  • Employees have the option to request a Lump Sum Deferral to a Tax-Deferred Account (TDA) or a Deferred Compensation Plan (DCP). 
    • If assistance is needed to set up a TDA or you have questions about an existing TDA, contact your Benefits Specialist. 
    • Work with your HR Generalist to complete the form for a lump sum payment deferral
  • Employees may request that they remain on the payroll to exhaust any eligible remaining vacation leave after their last day at work; however, the final decision rests with the department regarding the use of vacation days to remain on the payroll.