Leave Loading Calculator
See what the 17.5% loading on your annual leave is worth in dollars, and whether shift penalties would pay you more.
What is leave loading?
Leave loading is an extra 17.5% paid on top of your normal pay while you’re on annual leave. It isn’t part of the National Employment Standards. It comes from your award, enterprise agreement or employment contract, so what you get depends on what yours says.
It started in 1970 in the Metal Trades award, to make up for the overtime and shift opportunities people lose while they’re away. It then spread to most other awards, and 17.5% became the standard figure.
Who gets leave loading?
Most award-covered employees do. Many salaried staff and people on enterprise agreements or individual contracts don’t, or have it handled differently.
Some pay rates are already “loaded”, meaning the loading is built into the rate or salary. If yours is, you won’t get a separate 17.5% on top. Check your contract, payslip or award to be sure.
Leave loading vs shift penalties
Under several awards, shiftworkers get the leave loading or the shift penalties they would have earned during the leave, whichever is higher. The loading is worked out on base pay only, not on overtime or penalty rates.
For example, four weeks at $35 an hour and 38 hours a week is $5,320.00 of base pay. The loading is $931.00. If you’d normally earn $220 a week in penalties, that’s $880.00 over four weeks, so the loading is higher by $51.00. At $300 a week in penalties ($1,200.00), the penalties win by $269.00. Enter your own numbers above to see which applies to you.
Loading on unused leave when you leave
If your award provides for it, leave loading is also paid when your employment ends and you’re paid out for unused annual leave. Choose “Unused leave balance” above to estimate it. To see the full picture, including notice and other entitlements, use the Final Pay Calculator, or work out your leave hours with the Annual Leave Calculator.
Frequently asked questions
Is leave loading compulsory?
Not under the National Employment Standards. Leave loading only applies if your award, enterprise agreement or employment contract provides for it. If it does, your employer must pay it.
How is the 17.5% calculated?
Take your base pay for the leave period (ordinary hours at your base rate) and multiply it by 0.175. Overtime and penalty rates are not part of that base. For example, $5,320.00 of base pay gives $931.00 of loading.
Do part-time employees get leave loading?
Usually, yes. Where your award provides loading, part-time employees generally get it on the base pay for the hours they would have worked while on leave, just like full-time staff. Check your award or agreement.
Do casuals get leave loading?
Generally, no. Casuals don’t take paid annual leave, and they receive a casual loading (commonly 25%) in their hourly rate instead. Some awards or agreements differ, so check yours.
Is leave loading taxed?
Yes. Leave loading is part of your assessable income and is taxed along with your leave pay. Tax on a payout when you finish up can be withheld differently, so check the ATO’s guidance or ask your payroll team.
Why is it 17.5%?
It dates back to 1970, when the Metal Trades award introduced it to make up for the overtime and shift work employees missed while on leave. The figure was set at 17.5% and later spread to most other awards.
Sources
This calculator gives general information only and isn’t legal or financial advice. Your entitlement depends on your award, agreement or contract. Check it, or contact the Fair Work Ombudsman, before relying on these figures.