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Leave loading

Some federal and state awards provide for annual leave loading for employees taking annual leave. This is generally calculated at a rate of 17.5% and is subject to certain rules in relation to PAYG Withholdings.

Under the terms of most awards, the loading is strictly payable only on the award rate. It is usually paid on the rate of pay actually received. If you're not sure about this, check with the employee's relevant award or employment agreement. The Fair Work website also has lots of helpful information regarding leave entitlements and how leave loading is calculated.

There's likely a default pay item already set up for you to use for leave loading – if not, it's easy to create one.