Leave Loading Calculator
Updated November 2026 · Free · No sign-up
Calculate annual leave loading — the Australian 17.5% top-up on holiday pay: per leave block, per year, on termination payouts, and who actually gets it.
Quick answer: Leave loading = 17.5% × weeks of leave × ordinary weekly pay. Four weeks of leave on $1,500/week earns $1,050 of loading on top of the $6,000 leave pay. It comes from your award or agreement — not the NES — so coverage depends on your instrument.
What Leave Loading Is (and Why It Exists)
A 17.5% premium on annual leave pay, born in 1970s awards to compensate workers for the overtime and penalty earnings they'd miss while on holiday. It survives in most modern awards and many enterprise agreements. Not an NES right — award-free employees and many salaried professionals don't get it unless their contract says so.
Worked Examples
Example 1 — the annual block. $1,500/week, 4 weeks: leave pay $6,000 + loading $1,050 = $7,050 for the holiday period.
Example 2 — the greater-of rule. Shift workers' awards often pay the GREATER of 17.5% loading or the weekend penalties they would have earned: rostered penalties worth 22% of base beat the loading — payroll must compare, not default.
Example 3 — termination payout. Leaving with 6.4 weeks of unused leave: the payout includes loading where the award provides it — 6.4 × $1,500 × 1.175 = $11,280, not $9,600. Unpaid loading on final pays is a routine underpayment claim.
Coverage and Rules
| Question | Answer |
|---|---|
| Source | Awards/agreements/contracts — check YOUR instrument; 17.5% is the convention, not law |
| Base | Ordinary time earnings for the leave weeks — not overtime |
| When paid | With the leave pay (some employers pay annually in December — check timing policy) |
| On termination | Payable on unused leave where the award includes it — the High Court-settled position |
| Salaried staff | Often "absorbed" into annualized salaries — valid only if the salary genuinely covers it and the contract says so |
| Tax | Ordinary income; the old tax-free loading threshold is history — normal withholding applies |
Checking Whether You're Owed It
- Find your award (Fair Work's coverage lists) or agreement — search "annual leave loading" in the document.
- Check payslips for leave periods: the loading should appear as a separate line or itemized component.
- Annualized salary? The contract must identify what the salary absorbs — silent contracts leave the entitlement intact and claimable.
- Back-claims run up to 6 years — 4 weeks/year × 17.5% is roughly 1.35% of several years of salary, real money through an underpayment claim.
Interaction With the Rest of Leave Math
Loading rides on top of the 4-week NES entitlement (5 for shift workers), accrues nothing itself, and compounds the cost of leave liabilities for employers — a 100-person firm's leave balance carries a hidden 17.5% loading layer on the balance sheet. For the payout-vs-take decision at exit, loading tips the scales slightly toward cashing out where allowed, since the payout carries it too.
Frequently Asked Questions
What is annual leave loading?
A 17.5% premium on annual leave pay from awards/agreements — compensation for penalty earnings missed while on holiday. Not a universal NES right.
How is leave loading calculated?
Weeks of leave × ordinary weekly pay × 17.5%. Four weeks on $1,500/week = $1,050 of loading on top of leave pay.
Who gets leave loading in Australia?
Employees whose award, enterprise agreement, or contract provides it — most award-covered workers yes; award-free salaried staff only if contracted.
Is leave loading paid on termination?
Yes — unused annual leave pays out WITH loading where the award provides loading, settled law; missing it is a claimable underpayment.
Do shift workers get loading or penalties on leave?
Typically the GREATER of 17.5% loading or the penalties they would have earned on their roster — payroll must run the comparison.
Is leave loading taxed?
As ordinary income with standard withholding — the historical tax-free threshold on loading no longer applies.
✓ Formula verified • Last updated: November 3, 2026