Bottom Line Up Front

Terminal leave = using your accrued leave at the end to get out early. You leave active duty but keep getting paid. Example: Have 60 days leave, ETS June 30. Take terminal leave May 1-June 30. Out of work May 1, but paid through June 30. That's your ramp-down time. Key: Use terminal leave intentionally—moving, job hunting, family time, not Netflix. This is your gift. Use it wisely.

Most veterans waste terminal leave. Don't be one of them.

What Is Terminal Leave

How It Works

Terminal Leave = Using Leave to Shorten Your Active Duty

Example:

Your ETS date: June 30
You have 60 days of accrued leave
You take terminal leave May 1-June 30 (60 days)
You're no longer "on duty" May 1
But you're still getting paid through June 30
Your official ETS is still June 30
You've basically gotten 2 months off while paid

In your paycheck:

May 1-June 30: Full paycheck as if you were working
This is money you've earned; you're just using it at the end

Leave vs. Terminal Leave

Regular Leave:

You take a week off, still get paid that week
You come back to work after
You used 5 days of leave

Terminal Leave:

You take your remaining leave all at once at the end
You don't come back to work
You're officially out of the military at ETS
You've used all your leave to shorten active duty

How Much Leave You Likely Have

Military accumulates leave:

2.5 days per month (Army/Marine Corps)
2.5 days per month (Navy)
Varies slightly by branch

Over a career:

4 years: ~120 days
6 years: ~180 days
10 years: ~300 days
20 years: ~600 days

Maximum you can "use" is usually 60-120 days before ETS. Rest is lost or paid out.

Terminal Leave Strategy

Know Your Rules

Before taking terminal leave, know your command's rules:

How much terminal leave can you take?
When must you submit request?
Can your command deny it? (Rarely, legally protected)
What's the process?
Do you keep access to base during terminal leave? (Depends, but usually no for regular access)

Key rule: You're entitled to terminal leave if you want it. Commands can't deny you (legally).

Some commands pressure you:

"We need you through June 30"
"Take terminal leave in January, stay with us till June"
"You can sell it back instead"

Reality: You have rights. Use terminal leave if you want. They can't make you stay.

Planning Your Terminal Leave

Ideal timeline:

Month 12 before ETS: Know you're getting out
Month 9 before ETS: Decide when to start terminal leave
Month 6 before ETS: Submit terminal leave request to command
Month 3 before ETS: Confirm approval, start planning
Month 2 before ETS: Begin out-processing
Terminal leave month: Execute plan, move, transition

Ideal Terminal Leave Duration

Recommendation: 60-90 days

Why 60-90 days:

That's 2-3 months to handle transition
Enough time to move/find housing
Enough time to interview for jobs (slow process)
Enough time to mentally prepare
Not so long you go crazy from boredom
Not too short that you're overwhelmed

If you have less than 60 days leave: Take what you have. It's still useful.

If you have more than 90 days: Sell the rest or donate to leave bank (varies by branch). You probably can't use it all.

What to Do During Terminal Leave (Don't Waste It)

Don't Do This

Mistake 1: Binge Netflix/video games all day

Yes, you've earned rest
Yes, recovery is important
But 2-3 months of this is soul-crushing
You'll regret it mentally

Mistake 2: Take it "just in case" and not plan

You're on terminal leave, no plan
Panic sets in
You end up wasting time

Mistake 3: Travel without purpose

Taking random trips instead of focusing on transition
You need this time for serious transition tasks

Mistake 4: Ignore out-processing

Terminal leave doesn't mean you skip out-processing
You still have medical exams, paperwork, etc.
Plan around it

DO This (Smart Terminal Leave Uses)

Priority 1: Out-Processing (Month 1-2 of terminal leave)

Medical exams/appointments
Finance review (final pay, travel vouchers)
Personnel (DD-214, official records)
CIF turn-in (gear)
Housing clearance
ID card turn-in/replacement
Transportation/moving

This takes 6-8 weeks if you're organized, 12+ weeks if disorganized.

Priority 2: Moving (Month 1-2 of terminal leave)

Find new housing (if moving)
Arrange movers
Pack
Physically move
Set up utilities
Unpack essentials

Priority 3: Job Hunting (Throughout terminal leave)

Interviews for jobs (they happen throughout)
Final push on job applications
Accept job offer
Prepare for first day

Priority 4: Family Time (Mixed throughout)

Quality time with kids
Take family on trip (one trip, not multiple)
Settle into new location
Help kids transition
Spend time with spouse

Priority 5: Mental/Physical Prep (Throughout)

Therapy/counseling (start here if needed)
Fitness (maintain routine)
Reading/learning about career
Meditation/reflection
Journal/process emotions

Priority 6: Rest (Last month)

By last month, mostly done with transition
Actually rest then
Recovery from busy 2 months
Mental prep for civilian life

Terminal Leave Timeline (Ideal)

Month 1 of Terminal Leave (Week 1-4)

Week 1:

Confirm terminal leave is approved
Make list of out-processing tasks
Schedule medical appointments (early)
Start packing (if moving)
Contact movers

Week 2:

Medical exams begin
Movers booked/confirmed
Out-processing paperwork started
Job interviews happening (likely)

Week 3:

Continue medical/finance/personnel out-processing
Moving/packing in progress
Job interviews continuing

Week 4:

Out-processing accelerates (toward end)
Actual move happens (if moving)
Job interview(s) happening

Reality: Month 1 is BUSY. This is work-level busy.

Month 2 of Terminal Leave (Week 5-8)

Week 5-6:

Most out-processing done
Moving complete
New location settled (kids in school, utilities on, etc.)
Job interviews completed (hopefully)
Job search in final stages

Week 7:

Week 8:

Month 3 of Terminal Leave (If You Have 90 Days)

Week 9-12:

Good use: If you have 90 days, month 3 can be actual rest after busy month 1-2.

Critical Out-Processing Tasks

Must-Do (Legally Required)

Final Medical Exam: Verify health status, document everything
DD-214: Review for accuracy (most important doc you'll get)
CIF Turn-In: All military gear, no items missing
Finance Audit: Verify final pay, travel vouchers, separation pay
Personnel: Officer separation briefing, records review
ID Card: Turn in military ID, get veteran ID card
Housing: Clear quarters, turn in keys

Important (Very Important)

VA Claim Filing: File BDD if not already done (60-180 days before ETS)
Medical Records: Get copies of service medical records
Dental Work: Get teeth cleaned, work done (free while military)
Vision Care: Get glasses/contacts updated (free while military)
Immunization Records: Get copies
TSP Decision: Decide on TSP (leave in TSP or roll to IRA/401k)
SGLI Decision: Convert SGLI to VGLI or get civilian life insurance

Should-Do (Highly Recommended)

Get Certified Copies of DD-214: 10+ copies (you'll need them forever)
Veteran ID Card: Get it before you separate (takes weeks)
Post 9/11 GI Bill: Confirm you can use it, file if needed
VA Healthcare: Enroll (even if using civilian insurance)
Military Discount: Sign up for AAFES/NEX access (if applicable)
Tax Documents: Verify you'll get all military tax docs (W2 or 1099-R for TSP)

Can-Do (Nice to Have)

Passport: Get one (useful for travel)
Veteran Benefits Guide: Get state-specific guide
Career Counseling: Some bases offer this (free)
Resume Review: Get resume reviewed before leaving

Terminal Leave Checklist

3 Months Before Terminal Leave Start

Know your terminal leave start date
Know your ETS date
Confirm with command that terminal leave is approved
Understand your branch's out-processing requirements
Get list of out-processing locations/times
Schedule out-processing appointments (start early)

1 Month Before Terminal Leave

All appointments scheduled
If moving: Movers booked, housing found
If staying: New housing located
If job hunting: Last push on applications
Medical: Schedule final medical exam
Make packing list (if moving)
Create out-processing task list (use official checklist)

Week Before Terminal Leave

Confirm all out-processing appointments
Confirm movers arrival date
Job interviews: Know what's upcoming
Equipment/gear ready for turn-in
Start packing (if moving)
Cancel unnecessary subscriptions (mail, auto-pay, etc.)
Transfer/close military bank accounts if needed

During Terminal Leave

Execute out-processing tasks
Complete move (if applicable)
Attend job interviews
Maintain family routine (as much as possible)
Don't panic if things get crazy (normal)
Document everything (keep records)

Before Official ETS Date

All out-processing complete
DD-214 signed and in your hand
Separation pay processed
Medical records obtained
TSP/benefits decisions made
New location settled
Job situation resolved (hired or plan in place)

FAQ

Q: Do I have to take terminal leave? A: No, but it's a good idea. Alternative is leaving early with leftover leave that gets paid out or lost.

Q: Can my command make me stay instead of terminal leave? A: No. You're entitled to terminal leave. They can pressure but can't legally force you.

Q: What if my command says I can't take terminal leave? A: Escalate to higher command or chaplain. This is a legal right.

Q: Do I get paid for terminal leave? A: Yes, you get full paycheck for days in terminal leave (as if you were working).

Q: What happens if I get a job offer before terminal leave? A: You can usually start job during terminal leave (employers understand military transition). You'll be working civilian job while on terminal leave (and getting paid by military). Eventually military pay ends, civilian pay continues.

Q: Can I sell my leave instead of taking it? A: Rules vary by branch. Some allow selling unused leave, some don't. Check with your branch.

Q: What if I don't use all my leave? A: Usually lost (some branches have leave carryover limits). Better to use it than lose it.

Q: Should I plan a vacation during terminal leave? A: One vacation yes (relaxation). But not multiple vacations. You need focus time for transition.

Bottom Line

Terminal leave is your gift from military. Don't waste it. Use it for out-processing, moving, job hunting, and family time. Month 1-2 will be busy. Month 3 can be rest. By end of terminal leave, you should be fully transitioned to civilian life.

Pro tip: Treat terminal leave like a project. Make a plan. Execute it. You'll emerge on the other side successfully transitioned instead of scrambling in month 6.

Resources:

Military branch out-processing guide: Search "[branch] out-processing checklist"
VA services: VA.gov
Veteran resources: MilitaryOneClick, Vet2Business, Military Transition Toolkit

Sources: VA.gov, Military OneSource, Benefits.gov