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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:
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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