Australia Annual Leave Loading Explained
Understand annual leave loading in Australia—the extra payment many workers receive when taking annual leave. Learn who qualifies, how it's calculated, and if you're entitled.
What is Leave Loading?
Annual leave loading is an extra payment—typically 17.5%—added to your base pay when you take annual leave. It was originally designed to compensate workers for lost overtime and penalty rate opportunities while on holiday.
Who Gets Leave Loading?
Leave loading is not part of the National Employment Standards. It's typically provided through awards, enterprise agreements, or employment contracts. Many traditional industries include it, but it's less common in modern salary packages.
How It's Calculated
Leave loading is usually 17.5% of your base rate of pay for the period of leave taken. For example, if your base weekly pay is $1,000 and you take a week off, you'd receive $1,175 ($1,000 + $175 loading).
Leave Loading on Payout
When your employment ends, you're entitled to leave loading on your accrued leave payout if it would have applied when you took the leave. Check your award or agreement.