Payment for annual leave & annual leave loading

Annual leave loading is an additional payment employees receive when taking paid annual leave.

The Hair and Beauty Award provides for an annual leave loading of 17.5% in addition to the base rate of pay. During a period of annual leave, your employees receive the higher of:

  • their ordinary wages plus 17.5% or
  • their ordinary wages including weekend penalties (and shift loadings for shiftworkers).

Example

Jade has been working for Sally’s Home Beauty Service for 1 year on a full-time basis as a level 4 beauty therapist. She works 38 hours per week between Monday and Friday and is paid $738.00 per week.

Jade has applied in writing to her employer Hayley to take 3 weeks of annual leave as she is renovating her house. Hayley approves her annual leave request. While Jade is on annual leave, she receives her ordinary rate of pay and an additional 17.5% leave loading. This is calculated as follows:

 $738.00 + 17.5% = $867.15 per week

 

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Page last updated: 14 Feb 2014