Annual leave loading

4.4.1 General

a) When proceeding on annual leave, NSW government employees receive a special loading in addition to their normal salary.

b) In the case of teachers, payment of annual leave loading is determined based on the teacher’s accrued annual leave. For teachers in the Western Division, annual leave loading is calculated based on their accrued leave, up to a maximum of four weeks.

4.4.2 Eligibility and entitlement

a) Teachers who complete twelve months continuous service as at 30 November are entitled to an annual leave loading equivalent to 17½% of four weeks normal salary, provided that payment cannot exceed the loading calculated on the maximum salary for a Clerk, Grade 12 in the public service.

b) In the case of teachers with less than twelve months service as at 30 November, entitlement is calculated on a pro rata basis.

4.4.3 Effect of leave on entitlement

a) Full pay leave and all workers’ compensation leave count as full service and accrue annual leave loading.

b) Leave on half pay will only accrue annual leave loading for half the total number of days of absence e.g. if a teacher takes 40 days extended leave on half pay only twenty days will accrue annual leave loading.

c) All categories of leave without pay and unauthorised absences will not count as service and do not accrue annual leave loading.

d) Teachers who have an annual leave loading entitlement, take leave without pay during a school year and have established an entitlement to vacation pay in the midsummer vacation, are entitled to pro rata payment for annual leave loading. Payment will be made as soon as possible after 30 November in the year in which the entitlement falls due.

e) Teachers on temporary release to outside bodies are entitled to a pro rata payment based on service with this Department. Any balance of the leave loading is payable by the outside body.

4.4.4 Calculation and payment

a) For the purpose of calculating annual leave loading, the leave year commences on 1 December of each year and ends on 30 November of the following year.

b) Payment, based on a teacher’s salary rate as at 1 December is automatically paid as early as practicable in December each year.

c) With the exemption of the allowances listed in d) below, all allowances which are paid to a teacher on 1 December are included in the salary rate.

d) The following allowances do not attract annual leave loading:

  • climatic and disability allowances;
  • Lord Howe Island allowance;
  • principals’ expense allowance;
  • incentive based allowances
  • relieving allowance - except where the allowance is being paid at 30 November and has been paid for the preceding twelve months, or a teacher is appointed to relieve in a position for a whole school year. A whole school year is regarded for the purposes of this section as referring to the period from January to December in a year.

4.4.5 Broken service

Broken service does not attract annual leave loading. If a teacher resigns and is subsequently re-employed during the same year, only the service from date of re-employment is recognised for annual leave loading purposes.

4.4.6 Payment on resignation or retirement

a) Where the effective date of resignation or retirement is on or after 1 December, teachers are eligible for payment of annual leave loading based on service up until 30 November.

b) No pro rata payment is made where the effective date of resignation or retirement is prior to 1 December.


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