What is Annual leave loading?
Payroll & people. A plain-English definition for Australian business owners.
Annual leave loading is an additional payment (commonly 17.5%) on top of base pay during annual leave, paid where the relevant Award or agreement requires it.
Not all Awards include leave loading; for those that do, the loading must be applied correctly. Errors here are a common audit finding.
In a connected back office this sits with the People hub, where Valont runs award compliance, hr & ir advisory and employer advice line for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.