Public holiday pay is the amount an employee receives when they work, or are paid for, a public holiday. The rate depends on the employee’s employment type (full-time, part-time, or casual), the applicable Modern Award or enterprise agreement, and whether the employee actually works on the holiday. Getting public holiday pay wrong is one of the most common payroll compliance issues — particularly around penalty rates and the interaction between leave and public holidays.

This guide covers how to calculate public holiday pay across different employment types and common scenarios.

Key Takeaways

  • Full-time employees who do not work on a public holiday receive their ordinary rate of pay — it is treated as a paid day off.
  • Employees who work on a public holiday receive their ordinary rate plus a penalty rate — typically 150% to 250% depending on the Award.
  • Casual employees receive the casual loading on top of the public holiday penalty rate.
  • Public holiday penalty rates are set by the Modern Award or enterprise agreement, not the NES.
  • The NES provides for one substitute day if a public holiday falls on a day the employee does not normally work.

Step 1: Check the applicable Award or agreement

Public holiday pay rates are specified in the employee’s Modern Award or enterprise agreement. The NES establishes which days are public holidays (under the Fair Work Act 2009, section 115), but the penalty rates are Award-based.

Check the applicable Award for:

  • The public holiday penalty rate percentage
  • Whether different rates apply for different holidays (e.g., Christmas Day and New Year’s Day may have higher rates)
  • Whether the employee is entitled to a substitute day

Step 2: Determine the employee’s base rate

The base rate for public holiday pay is the employee’s ordinary hourly rate — the same base used for annual leave and other leave calculations. It does not include overtime, commissions, bonuses, or piece rates.

Formula:

Base hourly rate = Annual salary ÷ (52 × ordinary weekly hours)

Or for hourly employees, simply use their stated hourly rate.

Step 3: Apply the public holiday penalty rate

Full-time employees who work

If the full-time employee works on the public holiday, they receive:

Public holiday pay = Base hourly rate × Public holiday penalty rate × Hours worked

Example: Full-time employee works 8 hours on a public holiday. Base rate is $40/hour. The Award specifies 250% (double time and a half).

  • $40 × 2.5 × 8 = $800 for the day

Full-time employees who do not work

Full-time employees who do not work on a public holiday that falls on a working day receive their ordinary day’s pay — the public holiday is paid as if it were a normal working day. No penalty applies because they are not working.

Part-time employees

Part-time employees follow the same rules as full-time employees, but only for the hours they would normally work on that day. If the public holiday falls on a day they do not normally work, they are not entitled to payment (unless the Award provides otherwise).

Casual employees

Casual employees who work on a public holiday receive:

Public holiday pay = Base hourly rate × Casual loading × Public holiday penalty rate × Hours worked

The casual loading (typically 25%) is included before the penalty rate is applied. The exact interaction depends on the Award — some apply the penalty to the total (base + casual loading), others apply it to the base rate and then add the casual loading.

Example: Casual employee earns $35/hour base rate. 25% casual loading: $35 × 1.25 = $43.75. Award public holiday rate: 250%.

  • $43.75 × 2.5 × 8 = $875 for the day

Step 4: Handle the substitute day

Under section 116 of the Fair Work Act, if a public holiday falls on a day the employee does not normally work, the employer and employee can agree on a substitute day. The substitute day carries the same penalty rates as the original public holiday.

If no substitute day is agreed, the employee receives nothing additional — they were not scheduled to work anyway.

Step 5: Handle public holidays during leave

When an employee is on annual leave and a public holiday falls during that period:

  • The public holiday is not counted as a day of annual leave
  • The employee receives their ordinary pay for the public holiday
  • The annual leave balance is reduced by the working days only

Example: Employee is on annual leave for 5 days. A public holiday falls on the Wednesday. The employee uses 4 days of annual leave, and the public holiday is a paid day off that does not reduce their leave balance.

Common public holiday pay calculation errors

1. Paying full-time employees for a public holiday they do not work

If the public holiday falls on a day the employee does not normally work, there is no entitlement to payment unless a substitute day is agreed.

2. Not including casual loading in the penalty rate calculation

For casuals, the penalty rate applies to the total rate including casual loading, not just the base rate (depending on the Award).

3. Counting public holidays as annual leave days

When an employee is on annual leave and a public holiday falls during that period, the public holiday is a separate paid day — it does not reduce the annual leave balance.

4. Applying the wrong penalty rate

Different Awards have different rates. The same employee could have different rates for Christmas Day and a standard public holiday. Always check the specific Award.

5. Not offering a substitute day

When a public holiday falls on a day the employee does not work, the employer should offer a substitute day. Failing to do so can create payroll complications.

Putting it into practice

Five checks cover most public holiday pay calculations:

  1. Check the applicable Modern Award or enterprise agreement for the public holiday penalty rate.
  2. Confirm the employee’s ordinary hours on the day of the public holiday.
  3. Apply the correct rate: ordinary pay if not working, penalty rate if working.
  4. For casuals, include the casual loading in the penalty rate calculation.
  5. Do not count public holidays that fall during annual leave as leave days — they are separate paid days.
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Frequently Asked Questions

Do full-time employees get paid for public holidays?

Yes. If a public holiday falls on a day a full-time employee would normally work, they receive their ordinary pay even if they do not work.

What rate do employees get for working on a public holiday?

The rate depends on the applicable Award or enterprise agreement. Common rates are 150% (time-and-a-half) or 250% (double time and a half) of the ordinary hourly rate.

Do public holidays count as annual leave days?

No. If an employee is on annual leave and a public holiday falls during that period, the public holiday is a separate paid day and does not reduce the annual leave balance.

Can an employer require employees to work on a public holiday?

Under the NES, employees can refuse to work on a public holiday if the request is unreasonable. The employer must demonstrate a reasonable business need.

Do casual employees get public holiday pay?

Yes. Casual employees who work on a public holiday receive the public holiday penalty rate in addition to their casual loading. Those who do not work receive nothing unless the Award provides otherwise.

This article is general information, not legal advice.

Last updated: 26 July 2026.