Payment for annual leave

When your employees take paid annual leave, they also receive annual leave loading. Under the Vehicle Award, annual leave loading is 17.5%.

Shiftworkers receive the higher of the 17.5% annual leave loading, or their shift loading.

During a period of annual leave, employees receive the pay they would have received for working their ordinary hours plus the annual leave loading. The wages to be paid to an employee includes the first aid allowance (if applicable), and any overaward payments the employee receives in addition to the award rate. For more details see clause 29.7.

Annual leave loading is also paid on all annual leave paid out to an employee upon termination of employment. Find out more in the Termination - Final pay section.

Best Practice Tip

Employers have a range of record keeping obligations, including requirements to keep certain records about the leave their employees accumulate and take. It is best practice to provide your employees with written approval or refusal of their leave request. You can use the template annual leave and long service leave application form to approve or refuse an employee’s leave application. This template and a template for recording leave are available on our Managing leave and hours of work templates page.

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Page last updated: 22 Nov 2011