Annual Leave Loading Calculator Australia
Calculate 17.5% annual leave loading for any hours, rate or leave period. Supports the standard flat-rate method and the shift-worker comparison method. Built to Australian modern award standards.
How annual leave loading is calculated
Two steps, the same formula every time — regardless of full-time, part-time or award.
Ordinary leave pay
Hours of leave × ordinary hourly rate. This is what you’d earn if you worked those hours normally.
hours × rate
Add the loading
Multiply your ordinary leave pay by the loading percentage, then add it on top.
base × (loading% ÷ 100)
Total leave payment
Ordinary pay plus the loading amount. This is what should appear on your payslip.
base + loading = total
What is annual leave loading?
Annual leave loading is an additional payment on top of your ordinary base rate when you take annual leave. The standard rate — set in a 1974 federal award decision and carried through into most modern awards — is 17.5%. On a $32/hr ordinary rate, that adds $5.60 per hour of leave, bringing your effective leave rate to $37.60/hr.
The loading exists because employees on leave miss out on overtime, shift penalties and other above-base earnings they would have received if working. The 17.5% is a flat average approximation of those missed earnings across the workforce. It hasn’t changed since 1974 — which is why some awards now use a comparison method for shift workers with high penalty rates instead.
Annual leave loading calculation: worked examples
| Scenario | Ordinary pay | Loading (17.5%) | Total |
|---|---|---|---|
| 1 week · $30/hr · 38 hrs | $1,140.00 | $199.50 | $1,339.50 |
| 1 week · $32/hr · 38 hrs | $1,216.00 | $212.80 | $1,428.80 |
| 2 weeks · $30/hr · 38 hrs | $2,280.00 | $399.00 | $2,679.00 |
| 1 week · $30/hr · 20 hrs (part-time) | $600.00 | $105.00 | $705.00 |
| 4 weeks · $35/hr · 38 hrs (full year) | $5,320.00 | $931.00 | $6,251.00 |
Who is entitled to annual leave loading?
Leave loading is not a universal NES entitlement — it comes from modern awards and enterprise agreements. Most Australian employees covered by a modern award in retail, hospitality, manufacturing, construction, clerical and trades roles are entitled to 17.5% loading. Here’s how entitlement is determined:
- Modern award covers you: Check the annual leave section of your award on the Fair Work Ombudsman website. Most awards state “17.5% of ordinary pay” or “the greater of 17.5% or the shift differential.”
- Enterprise agreement (EBA) covers you: Check the annual leave clause in your EBA. Some agreements have replaced loading with a higher base rate — if so, you are still receiving the value, just differently structured.
- Award-free or high-income earner: No automatic loading entitlement unless your contract specifies it.
- Casual employees: Do not receive leave loading — casuals receive a 25% casual loading instead, which is a different concept. See Permanent Part-Time vs Casual: The Crucial Difference.
Not sure if your employer is paying your loading correctly? Use the payslip verification checklist to check in two minutes.
Leave loading for part-time employees
Leave loading applies to permanent part-time employees on exactly the same basis as full-timers — if your award includes it, you receive it. The only difference is the absolute dollar amount, because it’s calculated on your actual leave hours. A part-timer on 20 hours per week at $30/hr taking one week of leave receives $105 loading ($600 × 0.175) — proportionally identical to a full-timer’s loading at the same rate. Use the Part-Time Annual Leave Calculator to check your leave balance first, then this tool to calculate the loading.
The shift-worker comparison method
Some awards — particularly in manufacturing and production — require employers to pay the higher of 17.5% loading or the shift penalties the employee would have earned if they had worked their normal roster instead of taking leave. This is called the comparison method.
For a night-shift worker whose roster attracts a 25% night penalty, the comparison method produces $25 loading per $100 of ordinary pay — more than the standard $17.50. For a day-shift worker with no penalties, the flat 17.5% always wins. Check your award’s annual leave clause to see if the comparison method applies. The full explanation and examples are in the annual leave loading guide.
Leave loading on termination: is it payable?
When you resign or are terminated, leave loading is usually payable on your accrued leave balance — but it depends on your specific modern award. Most awards require it; some exclude it on termination; others make it conditional.
The calculator’s Termination payout tab above calculates the gross payout including loading. To estimate the net amount after ATO Schedule 7 tax, use the Annual Leave Payout Tax Calculator. For the full guide on what happens to your leave when you leave a job, read What Happens to Your Annual Leave When You Resign?
Related guide Is your employer paying leave loading correctly? Step-by-step payslip checklist → Related calculator Check your leave balance first — Annual Leave Calculator Australia →Note: Whether leave loading applies, and at what rate, depends entirely on your modern award or enterprise agreement. Always verify against your specific award before relying on this output. For binding advice, consult the Fair Work Ombudsman or a qualified workplace relations professional.
Frequently asked questions
Plain-English answers on how to calculate annual leave loading, who’s entitled, and what happens at termination.
How is annual leave loading calculated in Australia?
Loading = ordinary hours of leave × ordinary rate × loading% ÷ 100. For one week at $32/hr on 38 hours: ordinary pay = $1,216 × 0.175 = $212.80 loading. Total leave pay = $1,428.80. The calculator above handles both the flat 17.5% method and termination payouts.
What is annual leave loading?
Annual leave loading is an additional payment — most commonly 17.5% — on top of your ordinary rate when you take annual leave. It was introduced in 1974 to compensate for lost overtime and shift penalties while on leave. It applies only if your modern award or enterprise agreement includes it — it is not a direct NES entitlement.
Is annual leave loading 17.5% for everyone?
No. The 17.5% rate applies if your modern award or enterprise agreement includes it. Most awards in retail, hospitality, manufacturing and clerical roles do. Award-free employees, those on agreements trading loading for higher base pay, and casual employees generally do not receive it. Some awards use the higher of 17.5% or actual shift penalties — the comparison method.
Is annual leave loading paid when you resign?
Usually yes. Most modern awards require loading to be paid on the accrued leave balance at termination. Some awards exclude it or make it conditional. Check the annual leave clause in your specific award on the Fair Work Ombudsman website to confirm. The termination payout tab above calculates the gross figure including loading.
How is annual leave loading calculated for part-time employees?
Exactly the same formula: ordinary hours of leave × ordinary rate × 0.175. The dollar amount is smaller because a part-timer’s leave hours are fewer, but the percentage is identical. A part-timer on 20 hours at $30/hr taking one week: $600 × 0.175 = $105 loading.
What is the shift worker comparison method?
Some awards require employers to pay the higher of 17.5% loading or the shift penalties the employee would have earned if they had worked their normal roster. If your roster typically attracts penalties over 17.5% of your ordinary rate, you receive the higher amount. Not all awards use this — check yours specifically.
Is annual leave loading taxed?
Yes. Loading paid when you take leave is taxed as ordinary income at your marginal rate. Loading paid in a termination payout is included in Lump Sum A on your income statement and taxed under ATO Schedule 7 using the marginal-rate averaging method. Use the Annual Leave Payout Tax Calculator for the tax estimate.
Can my employer include leave loading in my salary?
Yes, but it must be clearly documented and you must be no worse off than the award. Vague “all entitlements included” clauses are generally insufficient. Your employer must be able to show the specific loading amount absorbed and demonstrate your total pay exceeds the award including loading. The Fair Work Commission has repeatedly rejected vague set-off clauses.