How To Calculate Holiday Leave Loading?

Check the employee’s ordinary weekly or hourly pay rate

Determine the amount of annual leave being taken

Calculate the leave pay for the period of leave

Find the applicable leave loading percentage, usually 17.5% if specified by the award or agreement

Multiply the leave pay amount by the leave loading percentage

Add the leave loading amount to the ordinary leave pay

If required by the award or agreement, compare leave loading with any alternative penalty rate and use the higher amount

Apply any relevant caps, exclusions, or conditions from the award, agreement, or policy

Verify the final amount against payroll rules before payment

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