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Annual Leave Loading - Do you need to pay it?

As part of the review of the Modern Awards, all 122 of them, Annual Leave Loading will come into full effect from 1 January, 2015.

What does this mean for your business?

Annual Leave Loading is paid at the time an employee takes annual leave and is paid at 17.5% as a loading on the normal hourly rate.

For those employers already paying above the Award, the Annual leave loading can be absorbed into the hourly rate/annual salary, provided that this has been communicated in writing.


If your business is currently paying the Annual leave loading at the time the employee takes annual leave, you can continue to do so.


If you have an Enterprise Agreement, the Enterprise Agreement may take precedence over the award provisions.  Please get advice on this before assuming that is the case. 


More detailed information about the changes to Modern Awards click here.

If you have any questions about this or other HR issues, feel free to contact us on 1300 720 004 or [email protected] 

Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors such as government legislation changes, may not be up-to-date at the time of reading. It is not legal advice and should not be treated as such.

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