Employment & leave Australia
Leave Loading Calculator Australia
Many awards pay a 17.5% loading on top of your normal pay when you take annual leave, and some pay whichever is greater of the loading or the shift penalties you would have earned. This calculator works out both and shows which is higher.
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Only if your award pays the greater of loading or penalties.
Annual leave pay
—Base pay for the leave
—
Leave loading
—
Loading as a share
—
Penalties you would have earned
—
Award pays the greater of
—
Loading against shift penalties
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
A common award rate; many awards differ and some employees have none
Depends on your award or agreement. Leave loading is not part of the National Employment Standards. Whether you receive it, and at what rate, depends on your award or agreement. Check your pay guide on the Fair Work Ombudsman's website.
How do I calculate annual leave loading?
Multiply your base pay for the leave by 17.5%. Four weeks at $40 an hour for 38 hours is $6,080, and the loading is $1,064, making the leave payment $7,144. Some awards pay the greater of the loading or the penalties you would have earned, so shift workers can receive more.
Who gets leave loading
Leave loading is an award or agreement entitlement, not a legal minimum for everyone. Employees under the Fair Work Act's National Employment Standards are entitled to be paid at the base rate of pay for annual leave, and the loading is extra where an award or agreement provides it. Casual employees do not receive annual leave or its loading, because their casual loading already covers it.
A public-sector or enterprise agreement may set a different percentage, so check yours.
Taxation of leave loading
Leave loading is taxed as ordinary pay, not as a separate lump sum, when it is paid at the same time as leave. If you cash out leave on leaving a job, a separate tax treatment applies to the payout, so ask your payroll team or tax agent for the exact figures.
To see how many weeks of leave you have accrued, use the annual leave calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
base pay for the leave = hourly rate × hours per week × weeksloading = base pay × 17.5%penalties for the same period = average weekly penalties × weeksif the award says greater of: you receive the higher of the loading or the penalties, on top of base pay
The 17.5% loading dates from a 1974 award decision that compensated employees for the overtime and shift pay they missed while on leave. Many modern awards have kept it, and others replaced it with a rule that pays the greater of the loading or the shift penalties and allowances the employee would have earned.
If your award uses the greater-of rule, a shift worker earning large penalties may receive more than 17.5%, so the comparison matters.
A worked example
Four weeks of annual leave for an employee on $40 an hour, 38 hours a week, with $350 a week in average shift penalties.
- Base pay for the leave$6,080
- Loading, 17.5%$1,064
- Penalties for the period, 4 × $350$1,400
- Greater of loading or penalties$1,400
- Total leave payment$7,480
$7,480 for the four weeks, because the penalties are higher than the loading.
If the award paid the loading only, the total would be $6,080 plus the loading.
Accrued leave and the annual leave calculator
Full-time employees accrue four weeks of paid annual leave for each year of service, and shift workers in certain awards get five. Your leave balance comes from your payslip or HR system; this tool values leave you take.
If you are cashing out leave, check that your award and contract allow it and that you keep at least four weeks.
What it leaves out
It does not apply award overtime, allowances that are paid only when worked, or the rules that may differ for shift workers across awards. Use the Fair Work Ombudsman's Pay Calculator for an award-specific figure.
What this calculator does not do
- Loading rate is as you enter it; the default is the common 17.5%
- Penalties are your estimate
- No tax on leave payout modelled
- Not for casuals, who do not receive paid leave
Common questions
What is annual leave loading?
An extra 17.5% on top of your normal pay when you take annual leave, where your award or agreement provides it.
Do casual employees get leave loading?
No. They do not take paid annual leave, and their casual loading covers it.
Is leave loading in the National Employment Standards?
No. It comes from an award, enterprise agreement or contract.
What is greater of loading or penalties?
Some awards pay either the 17.5% loading or the shift penalties you would have earned, whichever is higher.
Is leave loading taxed?
It is taxed as ordinary pay when paid with leave. Lump sums on leaving have separate rules.
Where these numbers come from
- Fair Work Ombudsman — annual leave Four weeks of paid annual leave and how it is paid
- Fair Work Ombudsman — minimum wages National Minimum Wage and how it is adjusted each year
Rates last verified 2026-10-26 Every figure Fair Work Ombudsman sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
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