Casual Loading Calculator — Australia 2026-27
Check whether the casual loading rate matches what you should be getting.
Calculate your casual hourly rate including the Fair Work 25% loading. Compare casual vs permanent annual income, see the value of leave entitlements forgone, and understand the true cost comparison from an employer's perspective.
Based on Fair Work Act 2026-27 NES rates. Superannuation Guarantee: 12%. Always check your specific Modern Award for industry-specific variations.
The 25% casual loading under the Fair Work Act
What the 25% replaces
The standard casual loading paid under most Australian modern awards is 25% of the relevant permanent base hourly rate. The loading compensates a casual employee for not receiving the following entitlements that permanents accrue:
- Paid annual leave (4 weeks per year, NES)
- Paid personal/carer's leave (10 days per year, NES)
- Paid compassionate leave and public holidays
- Notice of termination
- Redundancy pay (for employers with 15+ staff)
Casuals do keep most other NES entitlements — unpaid parental leave, long service leave accruals in most states, Fair Work Information Statement, and superannuation guarantee.
The post-2021 statutory definition
The Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Act 2021 inserted section 15A into the Fair Work Act 2009. An employee is casual if the offer of employment is made 'on the basis that the employer makes no firm advance commitment to continuing and indefinite work according to an agreed pattern of work'. From August 2024, the Closing Loopholes No. 2 amendments added an 'employee choice' pathway to convert to permanent employment after 6 or 12 months. Post-Rossato v WorkPac, the statutory definition overrides how the relationship has played out in practice.
Casual loading across common Australian modern awards
The 25% is the most common but not universal
Below are indicative Level 1 / entry-level hourly rates under common modern awards at the Fair Work Commission's Annual Wage Review effective 1 July 2024 (these figures apply through 30 June 2025, with the next review normally taking effect 1 July). Enterprise agreements can provide a different (usually higher) loading, but cannot undercut the Better Off Overall Test against the applicable modern award.
| Modern award | Permanent base $/hr (L1) | Casual loading | Casual $/hr |
|---|---|---|---|
| National Minimum Wage | $24.10 | 25% | $30.13 |
| General Retail Industry (MA000004) | $26.32 | 25% | $32.90 |
| Hospitality Industry (HIGA MA000009) | $25.91 | 25% | $32.39 |
| Fast Food (MA000003) | $25.54 | 25% | $31.93 |
| Clerks — Private Sector (MA000002) | $27.12 | 25% | $33.90 |
| Building & Construction (MA000020) | $28.85 | 25% | $36.06 |
Weekend and public holiday interaction
Casual loading is typically compounded with penalty rates, not replaced by them. A retail casual working Sunday receives 25% casual loading plus 50% Sunday penalty on the base rate — a common arithmetic mistake is adding the two to get 75% rather than calculating them per the specific award formula.
Casual vs permanent part-time: the true comparison
The 25% loading rarely covers the full leave value
On the surface, a casual earning $37.50/hour looks better than a permanent part-time earning $30.00/hour — until you account for the paid leave, public holidays and sick days the permanent accrues. Here's a like-for-like comparison for a 30-hour-a-week worker across a 52-week year.
| Item | Permanent PT ($30/h) | Casual ($37.50/h) |
|---|---|---|
| Gross wages (48 weeks worked) | $43,200 | $54,000 |
| Paid annual leave (4 weeks @ $30) | $3,600 | — |
| Paid sick/carer's leave (10 days) | $1,800 | — |
| Public holidays (~10 days) | $1,800 | — |
| Total cash value | $50,400 | $54,000 |
| Redundancy/notice value | Accrues | Nil |
| Income predictability | Guaranteed | On-demand |
The 'true' casual premium
In this example the casual takes home $3,600 more (about 7%) but loses income security, leave, and redundancy protection. If the casual takes 2 weeks unpaid leave or has 5 sick days off, their advantage evaporates. Fair Work Ombudsman data shows casuals are substantially more likely to have under-payment claims settled in their favour — the admin complexity tips errors the worker's way.
Casual conversion to permanent employment rights
The employee-choice pathway (from Aug 2024)
The Closing Loopholes No. 2 reforms introduced a new 'employee choice' pathway. An employee can notify their employer in writing that they want to change to permanent employment if:
- They have been employed for at least 6 months (or 12 months for small business employers with fewer than 15 staff);
- They believe they no longer meet the casual employee definition in s.15A (i.e. there is now a regular pattern of work suggesting a firm commitment).
The employer must respond within 21 days. Refusal grounds are narrow: the employee still meets the casual definition, fair and reasonable operational grounds, or the change would require a significant change to the employment conditions.
Dispute resolution
Disputes go first to workplace-level discussion, then the Fair Work Commission. Penalties apply for misuse (e.g. firing and rehiring to reset the clock). The Fair Work Ombudsman's casual employees guide is the authoritative free resource. Employees keep accrued long service leave when converting in most states.
Casual super and tax thresholds
SG on every dollar since 2022
Until 30 June 2022, employers only paid Superannuation Guarantee (SG) to employees earning $450+ per month from that employer. The Treasury Laws Amendment (Enhancing Superannuation Outcomes) Act 2021 abolished the $450 threshold effective 1 July 2022, meaning casuals now receive SG on every dollar earned — even a 2-hour shift. The SG rate is legislated to rise to 12% from 1 July 2025.
| Financial year | SG rate | $450/month threshold |
|---|---|---|
| 2021-22 | 10.0% | Applies |
| 2022-23 | 10.5% | Abolished |
| 2023-24 | 11.0% | — |
| 2024-25 | 11.5% | — |
| 2025-26 | 12.0% | — |
PAYG withholding and the tax-free threshold
Casual wages are subject to PAYG withholding at standard marginal rates. If you tick 'I claim the tax-free threshold' on the ATO Tax File Number Declaration, your employer uses the free $18,200 threshold in the withholding tables. You can only claim this threshold from one employer at a time — if you hold multiple casual jobs, claim it from the one paying the most to avoid a year-end tax bill. Casuals often over-withhold and receive a refund; lodging a tax return each year is still required.
How penalty rates stack with the 25% casual loading
Penalties apply to the casual base, not the loaded rate
Most modern awards calculate weekend, public holiday, and overtime penalty rates from the casual base hourly rate (which already includes the 25% loading). For example, the Hospitality Award penalty for Sunday work is 175% — applied to the casual ordinary rate that includes the 25% loading. A $25/hr permanent rate becomes $31.25 casual ordinary; Sunday work pays $54.69 ($31.25 × 1.75).
Common penalty rate combinations 2026-27
| Award | Saturday | Sunday | Public holiday | Overtime (1st 2hr) |
|---|---|---|---|---|
| Hospitality (HIGA) | +25% | +75% | +150% | +50% |
| Retail (GRIA) | +25% | +100% | +150% | +50% |
| General Retail Industry | +25% | +100% | +150% | +50% |
| Clerks (Private Sector) | +50% (after 6hr Sat) | +100% | +150% | +50% |
| Restaurant Industry | +25% | +50% | +150% | +50% |
Public holiday minimum engagement
Many awards require a minimum 4-hour engagement on a public holiday even if the actual work is shorter. This protects casuals from being called in for 1 hour at a 250% rate and getting only $50 — they receive 4 hours at the public holiday rate as minimum payment.
What you give up: leave entitlements the 25% loading replaces
Annual leave (4 weeks / year)
Permanent full-time employees accrue 4 weeks (20 days) of paid annual leave per year — worth roughly 7.7% of annual pay (4 weeks / 52 weeks). Casual loading compensates for losing this. Shift workers receive 5 weeks (additional 25%).
Personal/carer's leave (10 days / year)
Permanent employees accrue 10 days of paid personal leave annually (sick + carer's combined) — worth roughly 3.8% of annual pay (10 days / 260 working days). Casuals get unpaid carer's leave but no paid personal leave.
Public holidays (typically 10/year)
Permanent employees receive pay for public holidays they would otherwise have worked — worth 3.8% of annual pay. Casuals only get paid for the hours they actually work on a public holiday (at penalty rates).
Long service leave
Casuals technically accrue long service leave (LSL) under state legislation if their service is "continuous" with one employer over 7-10 years. The 25% loading does not replace LSL — recent Fair Work decisions confirm this. Many casuals are unaware they have LSL entitlements.
Notice of termination and redundancy
Casuals do NOT receive notice of termination or redundancy pay. Permanent employees receive 1-5 weeks of notice and up to 16 weeks of redundancy pay depending on service length. This is the single biggest financial protection casuals forgo.
Total notional value
The leave entitlements above are worth approximately 15.3% of annual pay (excluding LSL and redundancy). The 25% casual loading therefore provides a roughly 10% premium for the irregularity, lack of redundancy protection, and ability of the employer to terminate without notice.
Rights for long-term Australian casual employees
Casual conversion under the Fair Work Act
Since March 2021, casual employees of large employers (15+ employees) who have worked for 12 months and a regular pattern of hours for the last 6 months must be offered conversion to permanent employment, unless there are reasonable grounds not to. From August 2024, the new "Closing Loopholes No.2" changes give casuals stronger rights to challenge sham casual classifications.
Parental leave
Long-term casuals (12 months continuous service with a reasonable expectation of ongoing employment) can take unpaid parental leave of up to 12 months — protected from termination. Government-funded Paid Parental Leave is available regardless of casual status if the work test is met.
Unfair dismissal
Casuals can lodge an unfair dismissal claim with the Fair Work Commission after 6 months of regular and systematic employment (12 months for small businesses). The remedy can include reinstatement and back pay.
Personal/carer's leave (still unpaid)
Long-term casuals can take unpaid personal or carer's leave when sick or caring for family — but they are not paid for it. Some enterprise agreements provide additional paid leave for long-term casuals.
Sham casual classifications
If you are paid as a casual but work regular guaranteed hours for 6+ months, you may legally be a permanent employee misclassified as casual. The 2024 Closing Loopholes changes empower the Fair Work Commission to declare such misclassifications and award backpay for leave entitlements.
Casual termination and final pay in Australia
No notice required (either side)
A casual employment relationship can be ended at any time without notice by either party. The employer pays only for hours actually worked up to the termination date. There is no statutory severance or "casual termination payment" beyond outstanding wages.
Final pay components
The final pay includes outstanding hours worked, accrued long service leave (where eligible under state legislation), and any unpaid commissions or bonuses owed. Annual leave, sick leave, and redundancy pay do not apply — these were notionally pre-paid via the 25% loading.
Casual unfair dismissal protections
If a long-term casual (6+ months, regular pattern) is dismissed in circumstances that would be unfair, they can claim unfair dismissal. Successful claims may award up to 26 weeks of pay (or reinstatement). The Fair Work Commission filing deadline is 21 days from termination.
Public holiday termination pay
If you are terminated and there is a public holiday during your normal working pattern, the employer must include payment for that public holiday in your final pay — this is one rare leave-equivalent the casual loading does NOT cover.
❓ Frequently asked Frequently asked questions about Australian casual loading
What is the casual loading rate in Australia?
The standard casual loading under the Fair Work Act and most modern awards is 25%. Some awards specify slightly different amounts (e.g. 24% for certain enterprise agreements), but 25% is the default and applies to most casual employees.
Does casual loading apply on penalty rates?
Penalty rates (weekends, public holidays, overtime) are calculated from the casual ordinary rate — which already includes the 25% loading. So yes, the loading effectively applies on top, but it's built into the base rate first, then the penalty multiplier is applied.
Do casual employees get paid sick leave?
No. The 25% loading is paid in lieu of paid leave entitlements including sick leave. Casuals can take unpaid carer's leave to look after immediate family or household members. Long-term casuals (12+ months) have additional unpaid leave rights under the Fair Work Act.
Does casual loading apply to superannuation?
Yes — Superannuation Guarantee is calculated on the full casual hourly rate including the 25% loading. With SG at 12% in 2026-27, an employer pays super on the loaded wage. Since 1 July 2022, the $450/month minimum threshold has been abolished — every dollar earned attracts super.
Can I be converted from casual to permanent in Australia?
Yes — if you have worked for a large employer (15+ employees) for 12 months and the last 6 months have followed a regular pattern, the employer must offer you conversion to permanent employment unless there are reasonable grounds not to. The Closing Loopholes reforms (2024) strengthened these rights further.
Why is casual pay 25% higher than permanent pay?
The 25% loading compensates casual employees for the leave entitlements they don't receive: 4 weeks annual leave (~7.7%), 10 days personal leave (~3.8%), public holiday pay (~3.8%), notice of termination, redundancy pay, and the irregularity of casual work. The notional value of leave alone is around 15%; the extra ~10% reflects the lack of job security and notice.
Is casual loading taxable?
Yes — casual loading is part of your assessable income and is taxed at marginal rates through PAYG withholding like any other wage. There is no special tax treatment for the loading component. See the income tax calculator to model your annual tax liability.
Do I get long service leave as a casual?
Potentially yes — state long service leave (LSL) legislation can apply to casuals if your service with one employer is "continuous" over 7-10 years (varies by state). The 25% loading does NOT replace LSL entitlements. Many long-term casuals are unaware they may have accrued LSL.
What happens to casual loading on a public holiday I don't work?
Casuals are not paid for public holidays they don't work — only for hours actually worked. This is one of the entitlements the 25% loading is meant to compensate for. Permanent employees receive pay for the public holiday automatically; casuals do not.
Can I claim unfair dismissal as a casual?
Long-term casuals with 6+ months of regular and systematic employment (12 months for small businesses) can claim unfair dismissal. Compensation can be up to 26 weeks' pay or reinstatement. The deadline to lodge with Fair Work Commission is 21 days from termination.
Is the casual loading the same in every award?
The default Fair Work Act loading is 25%, and most modern awards adopt this rate. A handful of awards and enterprise agreements specify higher loadings (some media and entertainment awards) or different application rules. Always check the specific award covering your industry.
Can my employer pay me less if I'm casual?
No — the minimum award rate plus 25% loading is a floor. Many employers pay above this. Below-award payment for casuals (including paying ordinary rates instead of casual rates) is wage theft under the Fair Work Act and exposed by recent ATO and FWO audit programs.
Where these figures come from
Income figures on this page are drawn from the Australian Taxation Office (ATO), the Fair Work Commission (minimum wage and awards), and the Australian Bureau of Statistics (national earnings).
- PAYG withholding & income tax rates — ATO — Individual income tax rates.
- Superannuation Guarantee rate — ATO — Super guarantee percentage.
- National minimum wage — Fair Work Ombudsman — Minimum wages.
- Average weekly earnings — ABS — Average Weekly Earnings.
- Medicare levy — ATO — Medicare levy.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your casual rate is the base rate multiplied by 1.25 (or your specific award multiplier). The breakdown chart shows how much of every dollar is base pay and how much is the loading component. The net advantage calculation shows whether you are financially better off casual after accounting for lost leave entitlements.
The "net advantage" row shows what you actually gain (or lose) as a casual versus permanent after accounting for annual leave, sick leave, and annual leave loading you do not receive. If you work consistently (52 weeks with no gap), you are typically ahead. If you lose 6+ weeks of work per year from scheduling gaps, the advantage disappears.
Standard mode unlocks the loading rate and superannuation rate fields. If your award or enterprise agreement specifies a different loading rate, enter it here. The comparison chart also appears in Standard mode, showing casual vs permanent income side-by-side including the leave value that permanent workers receive.
You receive super at 12% (2026-27) on your full casual rate including the loading — not just the base rate. A casual earning $37.50/hr for 38 hours gets super on the full $37.50, giving $8,892/yr in super vs $7,114/yr for an equivalent permanent. This partially offsets the lack of leave entitlements.
The leave value forgone is the real cost of casual employment. Here is exactly what you give up and what the 25% loading is designed to compensate.
Permanent employees accrue 4 weeks of paid annual leave per year. For a 38hr/wk worker at $30/hr, that is $4,560 in paid holidays. As a casual, you get the loading instead — but if you take time off, you receive no pay. The 25% loading is designed to give you the cash so you can self-fund your own breaks.
Permanent employees receive 10 days of paid sick/personal leave per year — 2 weeks' wages. Casuals do not. From August 2024, casuals have access to 2 days unpaid carer's leave and 2 days unpaid compassionate leave per occasion — but these are unpaid. If you are sick as a casual, you receive nothing for that day. Budget for sick days as part of your casual financial planning.
When permanent employees take annual leave, most awards require an additional 17.5% leave loading on top of the ordinary rate. This was designed to compensate workers for lost overtime or shift allowances during the leave period. For a retail worker earning $1,045/wk, their 4 weeks leave costs the employer $4,388 + 17.5% loading ($768) = $5,156 in leave costs. This 17.5% is included in your leave-forgone calculation in this calculator. It is often overlooked as a cost of casual employment.
From 26 August 2024 (Closing Loopholes Act), casual employees have strengthened conversion rights. Here is what you need to know.
After 12 months of regular and systematic casual work, you can make a written request to convert to permanent employment. "Regular and systematic" means your hours have followed a consistent pattern — same shifts, same days, predictable schedule. One-off or highly variable casual work does not trigger conversion rights. Keep records of your roster to demonstrate regularity.
Converting to permanent means losing the 25% loading but gaining paid leave. Whether you are financially better or worse off depends on how regularly you work. If you work 52 weeks/year, permanent typically pays slightly less in gross wages but more in total compensation (when leave value is counted). If you take periods off, permanent is often better because you are paid for leave.
An employer can refuse a conversion request only for genuine operational reasons — for example, if the work pattern genuinely cannot be committed to on a permanent basis. An employer cannot refuse simply to avoid paying entitlements. If your request is refused unreasonably, you can dispute it through the Fair Work Commission. Keep your conversion request in writing and retain the employer's written response.
Understanding why employers use casual employment — and what it costs them — helps you negotiate effectively.
Despite paying 25% more per hour, casual employees often cost employers less per productive hour than permanent employees when all entitlements are counted. The employer saves approximately 12–15% in leave costs while paying 25% more in wages — netting a cost saving of approximately 10–13% per hour compared to the true all-in cost of permanent employment. Switch to Detailed mode to see the employer cost comparison for your rate.
Beyond the direct cost, employers pay for flexibility — the ability to roster casuals only when needed and to let them go without notice or redundancy pay. This flexibility premium is why casual employment persists even in sectors where work is predictable. Industries with high seasonal or demand variability (hospitality, retail, tourism, agriculture) use casualisation most extensively.
If you are negotiating your casual rate, knowing the employer's true cost advantage is powerful. The employer saves approximately 10–13% on true employment costs by using casual versus permanent. This suggests there is genuine room to negotiate a slightly higher casual loading (27–30%) for a long-term casual arrangement that could justify a higher rate — particularly if you are providing the same flexibility as a permanent with none of the entitlements they must plan for.