Public Holidays in Australia: Who Gets Paid What?
Public holidays generate more payroll questions than almost anything else. The rules change depending on whether an employee is full-time, part-time, or casual, whether they actually worked the shift, and what day of the week the holiday falls on.
Here is a straightforward guide to how public holiday pay works under the National Employment Standards (NES) and Modern Awards.
1. If the Employee Does Not Work the Public Holiday
Under the National Employment Standards, an employee is entitled to be absent on a public holiday and receive their base rate of pay for the ordinary hours they would have worked.
The key phrasing here is "would have worked":
Full-time staff: Usually paid for the day at their base rate, provided it falls on a standard working day.
Part-time staff: Paid only if the public holiday falls on a day they are ordinarily scheduled to work. If a part-time employee never works Mondays, they are not entitled to pay for a Monday public holiday.
Casual employees: Generally not paid for a public holiday they do not work. Their 25% casual loading is designed to compensate for the lack of paid public holidays and leave entitlements.
Important Note on Base Rates: "Base rate" means base pay only. It does not include penalty rates, overtime, or allowances the employee would have earned had they been on shift.
2. If the Employee Does Work the Public Holiday
When staff work on a public holiday, the relevant Modern Award or Enterprise Agreement dictates their pay rate. Public holiday penalty rates are typically among the highest rates in any award.
Before processing public holiday shifts, check two key details in your award:
The Exact Penalty Rate: (e.g., 225% or 250% for permanent staff; up to 275% for casuals, inclusive of casual loading).
Minimum Engagement Rules: Many awards specify a minimum shift length for public holiday work (e.g., a minimum 3 or 4-hour payout), which may be longer than standard shift minimums.
3. Can Employees Refuse to Work a Public Holiday?
An employer can request an employee to work on a public holiday if the request is reasonable. However, the employee has the right to refuse if the refusal is reasonable, or if the employer's request was unreasonable.
Factors that determine what is "reasonable" include:
The operational nature of the workplace.
The employee's personal circumstances (e.g., family or carer responsibilities).
How much advance notice was given.
Whether the employee receives an allowance or salary that explicitly accounts for working public holidays.
Practical takeaway: Public holiday work is legally a request, not a direction. Simply placing an employee on a roster without prior agreement is not the same as making a formal request.
4. State Differences and Substituted Days
Public holiday rules get fiddly because public holidays are legislated at the state and territory level rather than nationally:
State Variations: Each state and territory declares its own holidays (e.g., King's Birthday or Labour Day on different dates).
Regional Holidays: Queensland, for example, has local regional show holidays that apply only in specific council areas.
Weekend Substitutions: When a public holiday falls on a weekend, state governments often declare a substitute day (usually the following Monday). Entitlements depend on whether the staff member ordinarily works weekends or weekdays.
Agreed Substitutions: Some awards allow employers and employees to agree to substitute a public holiday for another working day.
5. Interactions with Leave Entitlements
Annual Leave: If a public holiday falls during an employee's period of paid annual leave, the day is not deducted from their annual leave balance. They are treated as being on a public holiday for that day.
Personal / Carer's Leave: The same rule applies—a public holiday falling during paid sick leave is paid as a public holiday and does not deduct from their personal leave balance.
Unpaid Leave: A public holiday that falls during a period of unpaid leave is generally not paid.
Proactive Payroll Tip: The January Review
At the start of each year, pull the official public holiday calendar for your state or territory. Cross-reference those dates against your standard rosters and note which employees would ordinarily work those days.
Spending ten minutes setting this up in January prevents answering the exact same payroll question eleven separate times throughout the year.
Unsure About Your Public Holiday Rates or Award Setup?
Calculating penalty rates, minimum engagements, and substitute days can get complex quickly. If you want to make sure your payroll setup and leave balances are accurate, Simply Secretarial can help clear your backlog and streamline your back-office workflows.
Book a free 30-minute intro call with Simply Secretarial today to discuss your payroll and administrative support needs.
Disclaimer: This article provides general information current at the time of writing. It does not constitute legal or tax advice. Public holiday entitlements vary according to specific Modern Awards, Enterprise Agreements, state legislation, and employment contracts. Always verify details with the Fair Work Ombudsman or a qualified workplace relations professional.
