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Annual Leave Loading Calculator

Work out what the 17.5% leave loading adds to an employee's annual leave pay, where an award or agreement provides it.

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17.5% is the most common rate where an award provides it
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What is annual leave loading?

It is an extra payment on top of an employee's normal pay when they take annual leave, most commonly 17.5%. It exists where an award, enterprise agreement or contract provides for it.

Where Compono fits

Leave loading is one line in the real cost of employing someone, and most of that cost is invisible on the salary offer. Seeing the full picture, on-costs included, is what turns a headcount request into a defensible business case. Compono gives leaders the people data behind those decisions, so workforce cost is something you can plan and explain rather than discover at budget time. Pair this with the True Cost of an Employee calculator for the fully loaded figure.

See how it works

How it's calculated

The calculation takes the weekly wage (annual salary divided by 52), multiplies it by the weeks of annual leave to get the base leave pay, then adds the loading percentage. The 17.5% rate is the most common where leave loading applies, but it is not universal. Leave loading only applies where a modern award, enterprise agreement or contract provides for it, and some do not include it at all. Check the document that covers the role. This is general guidance, not legal or payroll advice.

Common questions

Is leave loading always 17.5%?

17.5% is the most common rate, but the amount and whether it applies at all depend on the relevant award or agreement. Some do not provide leave loading. Always check the document that covers the role.

Do all employees get leave loading?

No. It only applies where an award, enterprise agreement or contract includes it. Award-free employees on a common-law contract may not receive it unless the contract says so.

Is leave loading taxed?

Leave loading is generally treated as ordinary income for tax. Payroll treatment can vary, so confirm with your payroll provider. This is general guidance, not legal or payroll advice.

Figures are estimates using published benchmarks. Sources shown above; rates reviewed annually.