Topic Hub · Leave loading

Annual Leave Loading: The 17.5% Rule.

How annual leave loading works in Australia: the 17.5% rate, which awards actually provide it, casual loading at 25%, and how the ATO taxes it.

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Standard FT week is 38 hours.
$
For loading & payout values.

Here's your entitlement

AU$930.00
17.5% loading on 4 weeks of annual leave.
$5320
4 weeks base
17.5%
Loading rate
$931
Loading $
See full calculationModern awards
ComponentFormulaValue
Hourly rate-$35.00
Weekly base35.00 × 38h$1330.00
4 weeks base1330.00 × 4$5320.00
17.5% loading5320.00 × 0.175$930.00

ⓘ Annual leave loading is set by your modern award or enterprise agreement. The standard rate is 17.5% but some awards use shift penalties instead, whichever is greater.

Sarah Reid, CAHRI
Reviewed bySarah Reid, CAHRICert IV Payroll · Sydney based
Verified expert

Disclaimer: This tool does not constitute legal or financial advice. Results may be inaccurate due to changes in legislation or your circumstances. This tool does not constitute legal or financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in legislation, modern awards, or your personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Fair Work Ombudsman (fairwork.gov.au). Fair Work Ombudsman.

Leave loading Snapshot

Three numbers that define this entitlement.

Every figure derived from current legislation.

Annual leave loading
17.5%
On top of base pay
Award-dependent, not a NES entitlement.
Casual loading
25%
The usual modern award rate
Covers paid leave, notice and redundancy pay, not just annual and personal leave.
Or your shift loading
17.5% vs shift
Whichever is higher
Awards that provide both pay the greater of the two, not both.

Which awards pay annual leave loading?

Annual leave loading of 17.5% is set by your modern award or enterprise agreement, not by the NES, so it is not universal. Most awards pay the flat 17.5%, but shift workers under awards such as the Nurses Award, Aged Care Award, Manufacturing Award, Electrical Award and Mining Award receive the greater of 17.5% or the shift penalties they would have earned had they worked. Loading is calculated on your base rate, so it rose with the 2026 minimum wage increase. Superannuation is payable on loading unless it is clearly referable to lost overtime, a distinction covered in payday super has started. To put a figure on your own loading, including what is left after tax, use the annual leave loading calculator.

Is leave loading paid out when you leave a job?

Yes, where the award would have paid loading had the leave been taken. Under section 90(2) of the Fair Work Act 2009, unused annual leave is paid out at the rate that would have applied, which includes the 17.5% loading in most award-covered jobs. How the payout is then taxed depends on why you left, and is set out in annual leave payout tax. Work out the figure on the annual leave payout calculator.

Related Calculators

Entitlements that go with leave loading.

These come up in the same pay run or calculation. Each has its own calculator.

Annual leave calculator4 weeks/year + 17.5% loading
Public holidays by statePenalty rates & substitute days
Personal & carer's leave entitlements10 days/year combined entitlement
Q & A

Leave loading questions.

The most-asked questions about this entitlement.

What is annual leave loading?
An additional 17.5% paid on top of your base hourly rate during paid annual leave. It compensates for the loss of overtime and penalty rates while on leave. The 17.5% rate is the standard provision in nearly every modern award. Calculate your leave loading →
Who is entitled to leave loading?
Employees covered by a modern award, enterprise agreement or contract that specifies the loading. Most modern awards include 17.5% loading. Award-free employees aren't automatically entitled, it depends on their contract.
How is leave loading calculated for shift workers?
Several awards (Hospitality, Manufacturing, Nurses, Aged Care, Fast Food) pay shift workers the GREATER of 17.5% loading OR the shift penalty they would have earned during the leave. This protects shift workers from earning less on leave than working.
Is leave loading paid out on termination?
Yes, under s.90(2) of the Fair Work Act, unused annual leave is paid out at termination at the rate that would have applied if it had been taken, including loading where the loading would have applied. See what's in final pay →
Can leave loading be cashed out?
Where the award allows cashing out of annual leave, the loading is included in the cash-out amount on the same basis it would have been paid had the leave been taken.
Why is leave loading 17.5%?
It dates back to a 1971 Metal Industries Award case where the then-Conciliation and Arbitration Commission set the rate to compensate workers for the average overtime and penalty rates they'd miss while on leave. Modern awards inherited the figure.
Leave loading Methodology

Built on Modern awards.

Every leave loading calculation on this page is built directly from Modern awards and the relevant modern award where applicable.

Reviewed by a registered HR practitioner.

Last reviewed25 Apr 2026
ReviewerSarah Reid, CAHRI
Primary sourceModern awards
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