What is Annual Leave Loading? | Meaning & Definition | Akrivia HCM

An employee on annual leave is entitled to additional payment on top of their base rate of pay, either at the start or during the duration of annual leave.   

While the amount of the loading (if any) varies based on the industrial instrument that covers the employee’s employment, it is typically 17.5 percent of their base rate or average rate of pay. Annual leave loading is not available to all employees.   

Employees may be entitled to an additional payment on top of their regular pay while on annual leave, known as leave loading, holiday loading, or annual leave loading.   

The National Employment Standards (NES), which are part of the Fair Work Act 2009 and applied to all employees covered under the national workplace relations system, require full-time and part-time employees to take a minimum of four weeks of paid annual leave per year, regardless of any award, agreement, or contract.   

The award or enterprise agreement applied to the employee determines whether or not the employee is eligible for annual leave loading and the amount of loading used. Annual leave loading may be provided by an employment contract with the employer if they are neither an award nor a registered agreement covers this. Neither a tribute nor a written agreement covers this.   

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