Question 1

What is leave loading?

Accepted Answer

Leave loading is an additional payment of 17.5% on top of your base pay rate that some employees receive when they take annual leave. It is designed to compensate for the loss of overtime, penalty rates, or shift allowances you would otherwise earn while working.

Question 2

Who is entitled to leave loading?

Accepted Answer

Leave loading is an entitlement under most modern awards in Australia. If your employment is covered by a modern award, you are likely entitled to leave loading. However, employees on enterprise agreements or individual contracts may have different arrangements. Check your specific award or agreement to confirm eligibility.

Question 3

Why is leave loading 17.5%?

Accepted Answer

The 17.5% rate originated in the 1970s as a compromise during national wage cases. It was calculated to approximate the average amount of overtime and penalty rates that employees would lose while on leave. The rate has remained standard across most modern awards ever since.

Question 4

When is leave loading paid?

Accepted Answer

Leave loading is paid when you take annual leave. It is included as part of your leave pay for each day of annual leave taken. Some employers may also pay out accrued leave loading when employment ends or when unused leave is cashed out, depending on the applicable award or agreement.

Daily Rate (Base)	$308
Loading Per Day (17.5%)	$54
Total Leave Loading (10 days)	$538
Total Leave Pay (Base + Loading)	$3,615
Leave Pay Per Day	$362
Annual Loading Entitlement	$1,077
Fortnightly Equivalent	$41

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