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Payment for annual leave & annual leave loading

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

The Clerks Award provides for an annual leave loading of 17.5% in addition to the ordinary time rate of pay. During a period of annual leave, your clerical employees receive the higher of:

  • their ordinary wages, excluding all penalty rates, plus 17.5%, or
  • their ordinary wages, including all penalty rates, such as weekend penalties and shift loadings.

Example

Megan has been working as an Administration Manager for 2 years and her employment is covered by the Clerks Award. She works 38 hours per week between Monday and Friday and is paid $18.00 per hour.

Megan has applied in writing to her employer Genevieve to take 6 weeks of annual leave to go to Europe. Genevieve approves her annual leave request. While Megan is on annual leave, she receives her ordinary rate of pay and an additional 17.5% leave loading. This is calculated as follows:

$18.00 X 38 hours per week = $684.00 + 17.5% = $803.70 per week

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Page last updated: 17 September 2010