Payment for annual leave & annual leave loading

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

When an employee goes on annual leave, they are entitled to be paid the greater of:

  • Their ordinary wages, including any penalty rates or shift loadings that they would normally receive, or
  • Their ordinary wages, plus a loading of 17.5% instead of any penalty rates or shift loadings.

Example

Lou has been working for Kebab Kings in Sydney for 1 year on a part-time basis. She works 25 hours per week between Monday and Friday, from 10.00am - 3.00pm daily. Her hourly entitlement is $17.99.

Lou has applied in writing to her employer, Paul, to take 2 weeks of annual leave to visit her family overseas. Paul approves her annual leave request. While Lou is on annual leave, she receives her ordinary rate of pay plus 17.5% leave loading. While on leave, Lou is paid as follows: $17.99 x 25 = $449.75 + 17.5% = $528.46 per week.

If Lou normally worked Wednesday to Sunday, she would receive either the 17.5% or her weekend penalty rates, whichever is higher (but not both). 

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Page last updated: 30 Jun 2013