Home | Member Updates | Annual Leave Loading Amount – May 2024
Summary: As of May 2024, the ABS reports average weekly earnings at $1,721.60 (trend) / $1723.80 (original), which caps the 17.5% annual leave loading under Higher Education Awards. Shiftworkers receive either the shift penalties earned or the 17.5% loading, whichever is higher.
The Australian Bureau of Statistics (ABS) has released the latest figures for average weekly earnings. As of May 2024, the average weekly total earnings for all employees (male, Australia) is $1,721.60 (trend) / $1723.80 (original).
Source: Australian Bureau of Statistics – Average Weekly Earnings, Australia.
Why is this important?
The weekly earnings for employees (males, Australia) may be relevant to the annual leave loading cap that applies either under a relevant Award or your university's enterprise agreement.
Higher Education Industry General Staff Award 2020 - Clause 24.3: Annual Leave Loading
Clause 24.3 provides that:
(a) Annual leave loading will be paid at a rate of 17.5% of the ordinary rate of pay paid during the leave period, up to the limit of payment equal to the Australian Bureau of Statistics' weekly earnings for all males (Australia) for the preceding May quarter.
(b) Shiftworkers on annual leave will be paid the greater of:
(i) shift penalties an employee would have received had they not been on annual leave; or
(ii) the 17.5% annual leave loading as prescribed.
Higher Education Industry Academic Staff Award - Clause 20.2: Leave Loading
Clause 20.2 similarly provides that:
Academic staff will be entitled on a payday preceding 1 January of each year to an annual leave loading equal to 17.5% of their salary for the period of leave accrued, with a maximum payment equal to the Australian Bureau of Statistics' average weekly total earnings of all males (Australia) for the May quarter preceding the date of accrual.
Neither clause specifies which dataset is most appropriate beyond a reference to the “weekly earnings for all males (Australia)”.
ABS data
The ABS makes relevant data available, including:
Table 1: Average weekly earnings, Australia (trend) – which puts the relevant weekly rate at $1,721.60.
Table 3: Average weekly earnings, Australia (original) – which puts the relevant weekly rate for all industries at $1,723.80 (being $2.20 more than the ‘trend’ figure).
Table 10C: Average weekly earnings, Australia (original by industry) – which puts the relevant weekly rate for all industries at $1,723.80 (being $2.20 more than the ‘trend’ figure).Neither clause specifies which dataset is most appropriate beyond a reference to the “weekly earnings for all males (Australia)”.
Methodology
In their notes on methodology, the ABS states:
“The ABS considers that trend estimates provide a more reliable guide to the underlying direction of the original estimates and are more suitable than either the seasonally adjusted or original estimates for most business decisions and policy advice.”
Which figure is best?
In the absence of prescription in the Award as to which figure is the appropriate one to use, it is arguable that either the trend figure or the original figure is appropriate.
If you wish to proceed with abundant caution, you may wish to pay employees according to the original figure ($1,723.80), as it is the (fractionally) higher figure.
Please note: Your university's enterprise agreement may prescribe a different approach to annual leave loading. We recommend referring to your specific agreement for accurate information.
Questions? Legal advice is free for AHEIA members
Book an appointment with our General Counsel now or send an enquiry to legal@aheia.edu.au.