What annual leave loading is
Annual leave loading is an additional payment made on top of your normal pay while you take annual leave.
Annual leave loading is an additional payment made on top of your normal pay while you take annual leave. It is not part of the National Employment Standards (NES): the NES only requires your base rate of pay for your ordinary hours. Loading comes from a modern award, an enterprise agreement or your contract of employment, and not every employee gets it. Where it applies, the most common rate is 17.5%. Some awards and agreements set a different rate, so always check yours.
Loading or penalty rates: the higher-of rule
Many awards do not add the loading to penalty rates.
Many awards do not add the loading to penalty rates. Instead they say you are paid the higher of the two. The Fair Work Ombudsman gives two examples: under the Retail Award an employee gets the higher of a 17.5% loading calculated on the employee's minimum hourly rate, or the weekend or shift penalty rates, and under the Road Transport Award shiftworkers get the higher of 17.5% or the shift loading. To test this, choose the higher-of option above and enter the penalty or shift pay you would normally earn above your base rate in a week. The calculator compares it to the loading for the length of your leave and uses the larger figure. If your award pays the loading on top of penalty rates, use the first option.
Leave loading when employment ends
When employment ends, the employer must pay out any unused annual leave.
When employment ends, the employer must pay out any unused annual leave. Section 90 of the Fair Work Act 2009 says the amount is what would have been payable had the employee taken that period of leave. The Fair Work Ombudsman says that unused leave is paid out as if the leave had been taken during employment, including any applicable loading. The position can differ where loading is built into an annualised wage or covered by a contractual offsetting arrangement, and awards vary, so the termination switch above lets you include or exclude loading to match your award.
How this calculator works it out
You enter your hourly rate, your ordinary hours per week and the leave you are taking, either in weeks or in hours.
You enter your hourly rate, your ordinary hours per week and the leave you are taking, either in weeks or in hours. If you enter weeks, the calculator converts them to hours by multiplying by your ordinary hours per week. Base leave pay is the hours multiplied by your hourly rate. The loading is that base pay multiplied by the percentage, 17.5% by default. You then see the base, the loading and the total, and the effective hourly rate while on leave. Overtime and other allowances are not included unless you include them in the hourly rate you enter.
FAQ
What is annual leave loading?
Annual leave loading is an extra payment on top of your normal pay while you are on annual leave. It is not part of the National Employment Standards. You only get it if your award, enterprise agreement or contract provides it. The most common rate is 17.5%, but the exact rate and how it works depends on the individual award or agreement.
Is 17.5% leave loading compulsory?
No, not by the NES alone. The National Employment Standards require you to be paid your base rate of pay for ordinary hours while on annual leave, and that base rate does not include loadings. The 17.5% comes from modern awards, enterprise agreements or contracts. For example, the Miscellaneous Award 2020 says an employee taking paid annual leave must be paid a loading of 17.5% in addition to the payment required by the NES or their ordinary pay for the leave, whichever is greater. Check your own award.
How do I calculate leave loading?
Multiply your hourly rate by the hours of leave to get the base leave pay, then multiply that by the loading percentage. At $30 an hour for 4 weeks of 38 hours (152 hours), base pay is $4,560 and the 17.5% loading is $798, so the total is $5,358 before tax. The calculator above does this for any rate, hours and percentage.
What if my award pays the higher of loading or penalty rates?
Many awards say you get the higher of a 17.5% loading or the penalty rates you would have earned, such as weekend or shift penalties, not both. The Fair Work Ombudsman gives the Retail Award as an example: the higher of a 17.5% loading on the employee's minimum hourly rate, or the weekend or shift penalty rates. The Road Transport Award gives shiftworkers the higher of 17.5% or the shift loading. Choose the higher-of option above and enter your weekly penalty amount to compare.
Is leave loading paid when I leave a job?
Usually yes, where it would have been paid if you had taken the leave. Under section 90 of the Fair Work Act 2009, when employment ends the employer must pay out unused annual leave at the amount that would have been payable had the leave been taken. The Fair Work Ombudsman says unused leave is paid out as if taken during employment, including any applicable loading. Loading may not apply if it is built into an annualised wage or covered by a contractual offsetting arrangement, so check your award or agreement.
Is leave loading worked out on my base rate or my total pay?
That depends on the award or agreement. Some calculate it on the minimum hourly rate only. For example, the Retail Award example from the Fair Work Ombudsman applies the 17.5% to the employee's minimum hourly rate. Others may include other amounts. This calculator applies the percentage to the hourly rate you enter, so enter the rate your award says the loading is based on.
Do casual employees get annual leave loading?
No. Casual employees are not entitled to paid annual leave under the National Employment Standards, so there is no annual leave to load. Casuals are usually paid a casual loading in their hourly rate instead, which is a separate thing set by their award or agreement.
Can my employer include leave loading in my normal pay?
Sometimes. The Fair Work Ombudsman notes that annual leave loading may not be payable on top if it has been incorporated into an annualised wage arrangement or covered by a contractual offsetting arrangement. These arrangements have conditions, so if you think your loading has been rolled into your pay, check your award and contract or contact the Fair Work Ombudsman.
Sources
4 official sources
- Fair Work Ombudsman library: Annual leave loading in awards and agreements (17.5% most common; Retail and Road Transport examples; payment on termination; annualised wage and offsetting exceptions)
- Fair Work Ombudsman: Miscellaneous Award 2020 [MA000104], clause 21.3 (17.5% loading on annual leave)
- Fair Work Act 2009, section 90 (payment for annual leave at the base rate of pay; payment of untaken leave on termination)
- Fair Work Act 2009, section 87 (annual leave entitlement) and section 86 (casual employees)
Figures checked against the Fair Work Ombudsman library, the Fair Work Ombudsman award page and the Fair Work Act 2009. Last verified: September 2026. Leave loading varies by award, agreement and contract: check your own.