Annual leave pay

When employees take annual leave they get paid the amount that they would have been paid for ordinary hours, if they were working. This includes:

• their ordinary hourly rate (including any applicable all-purpose allowances)
• first aid allowance
• other wages payable under the employee’s contract of employment.

Annual leave pay doesn’t include:

• overtime
• shift rates
• weekend penalty rates
• special allowances
• payments for expenses that would normally have been reimbursed if the employee was working.

Example

Robbie gets paid leading hand allowance.

The leading hand allowance is an all-purpose allowance.

When Robbie takes annual leave, she gets paid this allowance.

Annual leave loading

In addition to annual leave pay dayworkers get paid the higher of:

• 17.5% annual leave loading calculated on their annual leave pay
• the weekend penalty rates the employee normally gets.

Shiftworkers get paid the higher of:

• 17.5% annual leave loading calculated on their annual leave pay
• shiftwork rates, including relevant weekend penalty rates, that the employee normally gets.

Example

James is a part-time dayworker, who works on Friday and Saturday. On Saturday, James gets paid 150% of his ordinary hourly rate.

James takes annual leave on Saturday. He gets paid for his ordinary hours on that day at 150% of the ordinary hourly rate.

James gets paid the Saturday rate because it’s higher than his annual leave pay plus 17.5% annual leave loading.

References

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