Leave loading is an additional payment made to employees when they take annual leave, intended to compensate for the potential loss of income from not receiving regular overtime or penalty rates during their time off.

Key points:

• Standard rate: Commonly 17.5% on top of the employee’s base rate of pay.

• Who gets it? It depends on the relevant award, enterprise agreement, or employment contract. Not all employees are entitled to it.

• When is it paid? Leave loading is usually paid at the same time as annual leave – during a standard payroll cycle.

Example:

If an employee earns $1,000 per week in base pay and is entitled to 17.5% leave loading:

• Their annual leave pay would be $1,000 + $175 = $1,175 per week during their leave.

How ClockOn handles leave loading:

In ClockOn, leave loading is automatically applied based on the employee’s award or agreement settings in the system, helping ensure compliance without manual calculations.

1. Is leave loading included when paying annual leave?

Yes, if an employee is entitled to leave loading under their award or agreement, ClockOn will calculate and include it automatically when annual leave is processed through the system.

2. How do I set up leave loading in ClockOn?

Leave loading is configured through the award setup. You can:

1. Enable or disable leave loading for specific leave types (e.g. Annual Leave)

2. Set the percentage (typically 17.5%)

3. Apply it to different employee groups if needed

3. Can leave loading be included in termination pays?

Yes. If the employee has accrued annual leave that hasn't been taken at the time of termination, leave loading can be included in the termination payout, depending on the applicable award or agreement. ClockOn supports this automatically if it's enabled in the award.

4. Is leave loading shown on payslips?

Yes, ClockOn itemises leave loading separately on payslips for transparency and compliance, showing both the base leave pay and the loading component.

5. How can I report on how much leave loading has been paid?

You can run payroll reports such as:

• Payroll Summary Report

• Payslip Audit Report

• Leave Taken Reports
  These allow filtering by pay types, including leave loading.

6. Does leave loading affect superannuation?

Superannuation is typically paid on ordinary time earnings, which may include annual leave but not necessarily leave loading. However, this depends on the ATO guidelines and award-specific conditions. ClockOn allows you to configure whether leave loading is included in super calculations.

💬 Common Customer Questions About Leave Loading

Do I have to pay leave loading?
This depends on the applicable award, enterprise agreement, or employment contract. ClockOn award-interpretation helps ensure correct application based on award rules.

How does ClockOn calculate leave loading?
Leave loading is automatically calculated based on the employee’s classification and the award or agreement settings in the system.

Can I disable leave loading for specific employees?
Yes – ClockOn allows manual overrides or classification-based exclusions if a specific employee isn’t entitled to it.

Does leave loading apply to termination payouts?
Some awards require it to be included in annual leave paid out on termination. ClockOn supports this and flags it where relevant.

Does leave loading apply to personal (sick) leave or other leave types?
No – it generally applies only to annual leave, not personal, compassionate, or unpaid leave.

Will leave loading appear on payslips?
Yes – it is shown as a separate line item when applicable, for transparency and compliance.