Public holiday penalty rates in Australia are among the highest in the world, ranging from 150% to 250%+ of the ordinary hourly rate depending on the industry award. For employers, getting these rates wrong is one of the most common — and most expensive — payroll errors.
This guide explains how penalty rates work, provides a breakdown by major award, shows you how to calculate the correct amount, and covers the common mistakes that lead to underpayment claims.
This article is general information, not legal advice.
Key Takeaways
- Public holiday penalty rates range from 150% to 250%+ depending on the award
- The penalty is on top of the ordinary hourly rate — it is not the total pay
- Full-time, part-time, and casual employees all receive penalty rates
- The Fair Work Ombudsman enforces compliance and can pursue backpay claims
- Your industry award determines the exact penalty rate
What Are Public Holiday Penalty Rates?
Penalty rates are additional pay rates that apply when employees work on a public holiday. They compensate employees for working on days that are traditionally rest days.
The penalty rate is expressed as a percentage of the ordinary hourly rate:
| Rate | Meaning |
|---|---|
| 150% | Time and a half (ordinary rate × 1.5) |
| 200% | Double time (ordinary rate × 2) |
| 250% | Double time and a half (ordinary rate × 2.5) |
The penalty rate is the total pay — not an additional amount on top of the ordinary rate. An employee paid at 200% receives double their ordinary rate.
Penalty Rates by Industry Award
| Award | Full-Time/Part-Time | Casual |
|---|---|---|
| General Retail Industry Award | 225% | 250% |
| Hospitality Industry Award | 175-200% | 200-225% |
| Health Professionals Award | 150% | 175% |
| Clerks — Private Sector Award | 200% | 225% |
| Fast Food Industry Award | 150% | 175% |
| Manufacturing Award | 150% | 175% |
| Building and Construction Award | 200% | 225% |
| Local Government Award | 150% | 175% |
| Social, Community, Home Care Award | 150% | 175% |
Note: These are indicative rates. Always check your specific award for the exact penalty rate, as rates may vary by classification and shift type.
How to Calculate Public Holiday Pay
Step 1: Determine the Ordinary Hourly Rate
The ordinary hourly rate includes:
- Base wage/salary
- Regular allowances (shift allowances, tool allowances)
- Excludes: overtime, bonuses, commissions, piece rates
Step 2: Apply the Penalty Rate
Multiply the ordinary hourly rate by the penalty percentage.
Step 3: Account for Hours Worked
Multiply the penalised rate by the number of hours worked.
Example Calculation
Employee: Retail worker, full-time Ordinary rate: $30/hour Hours worked on public holiday: 6 hours Penalty rate: 225% (General Retail Award)
Calculation:
- $30 × 225% = $67.50/hour
- $67.50 × 6 hours = $405.00 total
Casual Loading
Casual employees receive the penalty rate on top of their base rate (before casual loading). The casual loading is not included in the penalty rate calculation.
Example: Casual retail worker, base rate $30/hour, casual loading 25%
- Base rate: $30/hour
- Penalty rate: 225% of $30 = $67.50/hour
- Casual loading: NOT added on top of penalty rate
- Total: $67.50/hour (not $67.50 + $7.50)
Part-Time Employees
Part-time employees receive the same penalty rates as full-time employees when they work on a public holiday. The penalty rate applies to the hours they actually work.
Example: Part-time employee working 4 hours on a public holiday at 200% penalty:
- $30 × 200% = $60/hour
- $60 × 4 hours = $240.00
When Employees Don’t Work
If a public holiday falls on an employee’s ordinary working day and they do not work, they receive their ordinary pay for the day — not a penalty rate. This is the “paid day off” entitlement.
Example: Full-time employee who doesn’t work on a public holiday:
- Receives their normal daily pay
- No penalty applies
- The day counts as a public holiday, not annual leave
Overtime on Public Holidays
Overtime on public holidays attracts additional premiums. The typical structure:
- First apply the public holiday penalty rate (e.g., 200%)
- Then apply the overtime multiplier on top
| Overtime Type | Rate |
|---|---|
| First 2 hours | 200% × 150% = 300% |
| After 2 hours | 200% × 200% = 400% |
| Saturday overtime | 200% × 150% |
| Sunday overtime | 200% × 200% |
Note: Overtime rules vary by award. Check your specific award for the exact calculation.
Common Mistakes
Paying the Ordinary Rate
The most common error. Some employers pay the regular hourly rate for public holiday work. This is a clear violation and exposes you to underpayment claims.
Including Casual Loading in the Penalty Base
Casual loading should not be included in the base rate for penalty calculation. The penalty is applied to the base rate, and casual loading is not added on top.
Not Paying for the Full Shift
If an employee works a full shift on a public holiday, they are entitled to penalty rates for all hours worked. Partial payment is a common source of underpayment claims.
Applying the Wrong Award Rate
Different awards have different penalty rates. Applying a retail rate to a hospitality worker, or vice versa, creates errors.
Failing to Pay for Unworked Holidays
If a public holiday falls on an employee’s ordinary working day and they don’t work, they must still be paid their ordinary rate. Not paying for unworked holidays is a breach.
Frequently Asked Questions
What is the minimum public holiday penalty rate in Australia?
There is no single minimum. The penalty rate depends on your industry award. The lowest common rate is 150% (time and a half) for some awards.
Do casual employees get penalty rates?
Yes. Casual employees are entitled to public holiday penalty rates when they work on a public holiday. The rate depends on the award.
Can an employee refuse to work on a public holiday?
Employees can refuse to work on a public holiday if the request is unreasonable. The Fair Work Act provides that employers must not request unreasonable work on public holidays.
Is there a penalty for not paying penalty rates?
Yes. The Fair Work Ombudsman can investigate, order backpay, and impose penalties on employers who fail to pay correct penalty rates. Penalties can be significant.
How do I find my award’s penalty rate?
Visit the Fair Work Ombudsman website and search for your award. The penalty rates are listed in the “Hours of Work” and “Public Holidays” sections of each award.