Public Holiday Pay Australia: What is it and How to Calculate it?

It is important to be legally compliant and know what your employees are entitled to in terms of public holiday pay and the applicable public holiday pay rates.

In this article, you will learn:

• What is public holiday pay? 

• Public holiday pay rates 

• Public holiday rates for popular awards 

• Public holiday entitlements 

• Public holidays in Australia 

• How to calculate public holiday pay?

What is public holiday pay?

Employees who work a public holiday are entitled to a public holiday pay rate. Public holiday pay rates and entitlements are outlined in industry awards or enterprise agreements which are generally based on an individual’s age, responsibilities, qualifications, and industry.

Public holiday pay rates

Public holiday pay rates, often called penalty rates, are set by the award the employee is classified under. Public holiday pay rates are higher than the employees’ minimum pay rate. Full-time, part-time and casual employees receive different entitlements.

Full-Time 

In Australia, full-time employees who normally work on the day a public holiday falls on are entitled to a paid day off. This means that full-time employees who don’t work on a public holiday are entitled to be paid their minimum pay rate for the ordinary hours they would have worked if they weren’t away because of the public holiday. If a full-time employee works on a public holiday, they are entitled to the relevant public holiday rate paid at a penalty rate.

Part-Time 

Generally, most awards state that part-time employees are entitled to public holiday rates paid at a penalty rate for hours worked on a public holiday. Check your award or enterprise agreement for the conditions that apply to your business.

Casual 

Most awards state that casual employees are entitled to public holiday rates paid at a penalty rate for hours worked on a public holiday. Casual employees are generally not entitled to payment for public holidays that they do not work. 

This entitlement may differ based on the conditions in your award or enterprise agreement. For more information on casual employees’ entitlements, familiarise yourself with the Casual Employment Information Statement, which is a document that provides new casual employees with information about their conditions of employment.

Public holiday rates for popular awards

Award Type		Full-time & Part-time		Casual
Hospitality Industry		225% of their base hourly rate on public holidays (base hourly rate x 2.25 ‘double time and a quarter’)		250% of their base hourly rate on public holidays (base hourly rate x 2.50 ‘double time and a half’)
General Retail Industry
Fast Food Industry
Restaurant Industry
Pharmacy Industry
Health Professionals		250% of their base hourly rate on public holidays (base hourly rate x 2.50 ‘double time and a half’)		250% of their base hourly rate on public holidays (base hourly rate x 2.50 ‘double time and a half’)
Registered and Licensed Clubs

Visit the Fair Work website to find out more information about public holiday rates and penalty rates relevant to your award.