Casual Loading: What It Is & How It Works
Whats casual loading? It is an extra 25% added to a casual employee's base hourly rate under most awards, and it applies to award-free casuals on the national minimum wage too. It is paid because casuals do not get paid annual leave or paid personal leave.
This guide shows how the loading is worked out, what it does and does not cover, and what to check on your payslip. It builds on our casual vs part-time guide.
Whats casual loading and why do casuals get it
The loading is a trade-off. You get a higher hourly rate, and in return you give up the paid leave that permanent staff receive.
| Term | Meaning | Why it matters |
|---|---|---|
| Casual loading | A percentage added to the base hourly rate of a casual employee | It compensates for paid leave a casual does not get |
| Base rate | The hourly rate for the classification before loadings and penalties | The loading is worked out from this figure |
| Award-free casual | A casual not covered by a modern award, paid on the national minimum wage | Still gets the 25% loading on top of $26.44 per hour |
| Penalty rate | Extra pay for nights, weekends, public holidays or overtime | Set by the award, and it applies on top of the base rate |
| Casual conversion | A casual's right to ask to become full-time or part-time | Available after 6 months, or 12 months with a small business |
A casual rostered at two sites in the same week should see the same loading on both pay lines.
How to work out whats casual loading in dollars
Start with the pay guide rate for your award and classification, not a figure from a job ad.
- Find your classification and age in the Fair Work Ombudsman pay guide for your award.
- Take the base hourly rate that applies from the latest 1 July increase, which rose 4.75% under modern awards from 1 July 2026.
- Multiply that base rate by 1.25 to add the 25% loading, unless your award states a different percentage.
- Check whether the shift falls in a penalty period, and apply the award's penalty rate for it.
- Multiply by the paid hours and add any allowances that the award lists for your duties.
- Compare the result with the minimum, which is at least $33.05 per hour for an award-free casual.
Worked example for an award-free casual: $26.44 per hour plus the 25% loading gives $33.05 per hour. Your own award rate will differ, so use your pay guide figure in step two.
What the casual loading covers and what it does not
The loading is easy to misread, so check what it replaces and what is still owed.
- It stands in for paid annual leave and paid personal leave, which casual employees do not receive under the National Employment Standards.
- It does not replace penalty rates, so a Saturday or night shift still earns the award's extra rate where one applies.
- It does not cover public holidays, because a casual is paid for a public holiday only if they work it.
- It does not make compassionate leave paid, since the 2 days per occasion are unpaid for casuals.
- It does not remove long service leave, which in NSW covers full-time, part-time and casual workers after 10 years of continuous service.
- It must be part of your pay rate, and an employer cannot hide it inside a single flat rate that nobody can check.
Casual loading by award and employment type
Most awards use 25%, but your own award is the final word.
| Situation | How the loading works | What to check |
|---|---|---|
| Casual covered by a modern award | Usually 25% on the classification's base rate | The casual section of the pay guide |
| Award-free casual | 25% on the national minimum wage, giving at least $33.05 per hour | Fair Work Ombudsman minimum wage page |
| Casual under an enterprise agreement | Set by the agreement, which cannot fall below the safety net | The agreement text and payslip |
| Casual converting to part-time | The loading stops and paid leave starts, pro rata | Written confirmation of the new hours |
| Casual converting to full-time | The loading stops, with up to 38 ordinary hours a week and paid leave | Contract, roster and payslip |
| Junior or trainee casual | Loading applies to the junior or trainee rate | Age or training level in the pay guide |
Whats casual loading worth when you convert
Converting is a choice, and the right answer depends on how regular your hours are and how much you value paid leave.
- Ask to convert in writing after 6 months, or 12 months if you work for a small business with fewer than 15 employees.
- Your employer must respond in writing, and cannot refuse without following the process set out by the Fair Work Ombudsman.
- Compare your casual pay with the permanent rate plus paid leave before you decide, using your own roster over several weeks.
- Remember that employers must give new casuals the Casual Employment Information Statement, so ask for it if you never received one.
- Expect the 25% loading to stop on conversion, replaced by paid annual leave and paid personal leave on a pro rata basis for part-timers.
- Keep working hours steady for a few weeks after conversion, because agreed hours then become the basis for your roster.
Casual loading for employers
For employers, getting the loading right is a payroll task that repeats every pay run.
- Update base rates after each 1 July increase before the first pay run, so casuals are not paid on last year's figure.
- Show the loading as a separate line on the payslip, which is issued within 1 working day of payday.
- Keep time and wage records for 7 years so you can answer an inquiry from the Fair Work Ombudsman.
- Do not classify an ongoing worker as a casual to save costs, because that can be illegal if the arrangement is really permanent employment, as covered in our contractor vs employee guide.
- Give each new casual the Casual Employment Information Statement before or as soon as they start.
- Respond in writing when a casual asks to convert, and read our part-time minimum hours guide if the new role is part-time.
Common mistakes to avoid
- Assuming the loading is a bonus, when it is the payment in place of paid annual leave and paid personal leave.
- Paying a flat hourly figure with no loading line, so the worker cannot check the payslip against the pay guide.
- Adding 25% to the wrong figure, such as a rate that already includes penalties, rather than the base rate.
- Believing casual loading replaces penalty rates and overtime, which come from the award and apply separately.
- Staying casual for years on regular hours without asking about conversion, and missing a choice you are entitled to make.
Whats casual loading FAQ
Whats the casual loading percentage in Australia?
The loading is 25% under most awards, and it also applies to award-free casuals on the national minimum wage. Some awards or agreements may set a different figure, so check the Fair Work Ombudsman pay guide for your classification before you rely on 25%.
Is casual loading paid on top of penalty rates?
Both can apply, but how they combine depends on the award. Some awards calculate penalties from the base rate and then add the loading, while others work differently. Check the casual and penalty sections of your pay guide, or call the Fair Work Infoline on 13 13 94.
Do casuals get paid public holidays?
No. Casuals are paid for a public holiday only if they work it, and the penalty rate comes from the award or agreement. Permanent employees are paid for the ordinary hours they would have worked. A casual can also decline a request to work if it is not reasonable.
Can I stay casual after 6 months?
Yes. You can ask to convert after 6 months, or 12 months with a small business, but you do not have to. Staying casual keeps the 25% loading and the flexibility, while converting brings paid leave. Think about how regular your hours are before deciding.
Getting casual loading right
This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation. If you want regular shifts with the correct loading, visit our recruitment page and register with us.