Under the NES, an employer must pay annual leave at the employee's base rate of pay for their ordinary hours during the period of leave.
This doesn't include separate entitlements such as incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates.
Awards and agreements may provide for annual leave to be paid at a higher rate than required by the NES (for example, payment of annual leave loading in addition to the ordinary rate of pay).
On termination of employment an employer must pay an employee in respect of any accrued untaken paid annual leave.