Public Holiday Rates in Australia: Pay, Rostering and Compliance

Public holidays can be great for business, but they also come with extra payroll complexity. If you’re rostering staff on Christmas Day or running a long weekend promotion, you’ll need to get public holiday pay right - not just to stay compliant, but to keep your team engaged and paid fairly.

In this guide, we’ll explain how public holiday rates work in Australia, what to watch out for across different employment types, and practical steps to calculate pay confidently. We’ll also cover rostering rules, reasonable requests, and common pitfalls so you can plan ahead with fewer headaches.

What Are Public Holiday Rates In Australia?

“Public holiday rates” (often called public holiday penalty rates) are higher pay rates that apply when an employee works on a public holiday. They’re set by Modern Awards, enterprise agreements, or employment contracts (if an employee is award-free).

There isn’t one single “public holiday rate” for every industry. Instead, each Award sets its own percentage or multiplier (for example, double time and a half is common, but not universal). These are a specific type of penalty rates - higher pay intended to compensate staff for working at less desirable times.

Key points to remember:

• Rates vary by Award or enterprise agreement - hospitality, retail, health, construction and other sectors each have different rules.
• Casual employees typically receive casual loading in addition to public holiday penalties, but the exact interaction is Award‑specific.
• Public holiday penalty rates usually override weekend or evening penalties when they overlap, but always check the wording of the relevant Award.

Not every public holiday is the same in practice. For example, some states observe substitute days or regional holidays. Always check the public holidays that apply in your state or territory, then apply the correct Award provisions to your roster.

Do You Have To Pay Double Time On Public Holidays?

The short answer: not necessarily. “Double time” or “double time and a half” are common figures people mention, but your legal obligation depends on the specific Award or enterprise agreement that covers the role.

As an employer, you should identify the correct instrument for each employee and then confirm:

• The penalty rate that applies if they work on a public holiday.
• Whether casual loading stacks on top (and how it’s calculated).
• Minimum engagement periods for public holiday shifts.
• Any options to offer time off instead of paying the penalty rate (if permitted).

If your employees are award-free, their entitlements will flow from the Fair Work Act 2009 plus the terms of their contract. You still need to ensure their overall pay and conditions are at least as good as the National Employment Standards (NES), and it’s sensible to mirror industry benchmarks to manage risk and retention.

Tip: If you rely on annualised salaries or “all-in” pay, make sure your documentation and actual payments account for public holiday penalties where required. Annualised arrangements don’t automatically cancel Award entitlements. Many employers review their settings during peak holiday periods to ensure they’re still compliant with Modern Awards.

How Do You Calculate Public Holiday Pay?

Calculating public holiday pay generally involves three questions:

1. Was the employee rostered to work on the public holiday?
2. What instrument applies (Award, enterprise agreement, or contract)?
3. What does that instrument say about public holiday payments for this employee type?

1) Public Holiday Not Worked

If a public holiday falls on a day a full-time or part-time employee would ordinarily work, they’re entitled to be absent and paid their base rate for ordinary hours for that day. “Base rate” excludes penalties, allowances and overtime.

Casuals typically don’t receive payment for a public holiday they don’t work, unless an enterprise agreement or contract says otherwise.

2) Public Holiday Worked (Award/Agreement Employees)

If an employee works on a public holiday, check the Award or agreement for the correct penalty (e.g. 250% for each hour worked) and any minimum hours. Some instruments allow you and the employee to agree to time off instead of the penalty - but only if the Award or agreement permits it and the agreement is genuine and documented.

3) Public Holiday Worked (Award-Free Employees)

For award-free employees, the Fair Work Act provides the NES public holiday entitlement (the right to be absent without loss of base pay if they would normally work that day). If they do work, your contract governs the rate. Many employers choose to mirror industry norms to stay competitive and fair. A well-drafted Employment Contract helps set clear, compliant terms.

4) Examples (Illustrative Only)

• Full-time, public holiday not worked: If Tuesday is a public holiday and the employee normally works Tuesdays, pay their base rate for their ordinary Tuesday hours.
• Part-time, public holiday worked: If the Award says 250% on public holidays, pay 2.5 times the base rate for hours worked, subject to any minimum engagement, plus super if required.
• Casual, public holiday worked: Apply the Award’s public holiday penalty for casuals. Many Awards require the penalty on top of casual loading, but check the wording to avoid double counting errors.

To pressure test your calculations, many employers use the Fair Work Pay Calculator for a sense-check on Award settings, especially where weekend and public holiday penalties interact. You can read our guide to using the pay calculator for penalty rates.

What About Overtime On Public Holidays?

Overtime can still arise on public holidays (for example, if an employee works beyond their ordinary hours). If it does, apply the Award or agreement’s overtime rules - some instruments have specific clauses for “public holiday overtime.” Our overview of overtime steps through when extra rates apply and how to manage them.

Time Off In Lieu (TOIL)

Many Awards allow time off instead of paying public holiday penalties, but only if certain conditions are met (e.g. the agreement is in writing and the time off is taken within a set period). If you want to offer TOIL for holidays, make sure your process matches the instrument. For a deeper dive, look at time off in lieu and ensure your records show real consent.

Rostering On Public Holidays: What’s “Reasonable”?

Under the Fair Work Act, employers can request an employee work on a public holiday, and employees can refuse if the request is not reasonable or the refusal is reasonable. Whether something is “reasonable” depends on factors like the nature of your workplace, the employee’s role and personal circumstances, and whether they will receive penalty rates or other compensation.

Practical tips:

• Ask, don’t assume. Make a genuine request to work a public holiday rather than treating it as an automatic requirement.
• Give notice early. Advance planning makes it easier to accommodate reasonable refusals and maintain coverage.
• Document decisions. Note who was asked, the response, and the basis for the final roster to reduce disputes.
• Consider alternatives. Offering TOIL (if permitted) or swapping shifts can help balance business needs and employee preferences.

If you regularly trade across long weekends, building a seasonal roster policy into your contracts and workplace policies can set expectations upfront - while still recognising employees’ rights to reasonably refuse.

Managing Different Employment Types (Full-Time, Part-Time, Casual)

Public holiday rules intersect with the employment type and the instrument that applies. A quick checklist:

Full-Time

• Not working: Paid their base rate for ordinary hours if the public holiday falls on a normal workday.
• Working: Paid at the Award or agreement public holiday rate for hours worked. Check minimum engagement and any TOIL options.
• Annualised salary: Ensure the salary is sufficient to cover public holiday entitlements in practice, and track hours to confirm compliance.

Part-Time

• Not working: Paid base rate for ordinary hours if the day is part of their usual pattern of work.
• Working: Apply Award or agreement penalties for hours worked, and follow the same documentation and minimum engagement rules.

Casual

• Not working: Typically no payment unless an agreement or contract says otherwise.
• Working: Apply the Award’s casual public holiday penalty. Confirm how the casual loading interacts with the penalty rate to avoid under or overpayment errors.

Training days, travel time, and “on call” arrangements over public holidays can also attract specific penalties or minimums under some Awards. If you’re in hospitality or retail, remember that weekend penalties are separate to public holiday penalties; when both apply, the higher or specific public holiday provision usually governs - but it’s Award-by-Award, so verify using your instrument and the weekend pay rates context as a cross‑check.

Common Mistakes To Avoid (And How To Stay Compliant)

Most underpayments we see on public holidays fall into a few patterns. Here’s how to avoid them.

1) Assuming Every Holiday Is “Double Time”

It’s a widespread myth that public holidays are always double time or double time and a half. The real answer is in the Award or agreement. Build a quick internal reference table for your business listing each role, the correct instrument, and public holiday settings.

2) Forgetting Minimum Engagements

Many Awards set minimum shift lengths (for example, 3 hours) - and those minimums may differ on public holidays. Even if you roster a shorter shift, you may still need to pay the minimum.

3) Mixing Up Casual Loading And Penalty Rates

Some payroll systems accidentally compound casual loading and public holiday penalties incorrectly. Check how your software applies each component against the Award wording and run a manual test before a big holiday period.

4) “All-In” Salaries That Don’t Actually Cover Entitlements

Annualised salaries are not a shortcut around Award obligations. If you pay a salary intended to absorb penalties, ensure your contract language is clear and you regularly reconcile actual hours and entitlements so the employee is not worse off overall.

5) Poor Records Of TOIL Agreements

If you offer time off instead of paying penalties, ensure the Award permits it, get the employee’s agreement in writing, track the accrual, and make sure time off is taken within the required timeframe.

6) Outdated Contracts

Public holidays are a good prompt to refresh your contracts and policies - especially if your business has grown or changed trading hours. Clear terms on rostering, availability, and holiday work expectations reduce friction at busy times. If you’re updating documents, consider whether your roles need new or updated Employment Contract templates (for FT/PT) and casual agreements, and whether your Award references are still correct.

Practical Workflow For Your Next Public Holiday

Here’s a simple workflow you can run before each major holiday period.

1. List the applicable public holidays for your state/territory and trading days you’ll open.
2. Map each rostered role to its Award/agreement and confirm the public holiday rate, minimum engagement, and any TOIL options.
3. Plan your roster and make requests to staff early, recording responses and any agreed substitutions.
4. Sense-check pay settings in your payroll software using your Award table and a manual calculation. If helpful, sanity check with the pay calculator.
5. Confirm overtime rules for any extended trading and how they interact with public holiday penalties (our overview of overtime can help).
6. If you plan to offer time off instead of penalties, prepare a simple written form consistent with Award conditions and keep clean records. See time off in lieu for key rules.
7. After the period, audit a sample of payslips to confirm the correct rates and minimums applied, then file your notes so the next holiday is easier.

If you operate across multiple Awards (common in hospitality and retail), it’s worth creating a one‑page “holiday rates matrix” for managers. That document, paired with a short refresher on reasonable requests and rostering, reduces errors when stores are busy.

How Sprintlaw Can Help

Getting public holiday rates right comes down to accurate instruments, clear contracts, and practical processes. If you need help mapping roles to Awards, implementing compliant salary arrangements, or updating documentation, our team can support with tailored advice and documents. We can also review your pay settings in light of Modern Awards and your trading patterns so you’re set before the next long weekend.

Key Takeaways

• There’s no single “public holiday rate” - check the relevant Award, enterprise agreement or contract for each role.
• Full-time and part-time employees who don’t work are usually paid their base rate for ordinary hours if the public holiday falls on their normal workday.
• If employees work on a public holiday, apply the correct penalty rate, confirm minimum engagements, and document any lawful TOIL agreements.
• Rostering requires a genuine request to work; employees can refuse if the request is not reasonable or the refusal is reasonable.
• Annualised salaries and casual loading don’t remove Award obligations - ensure your documentation and payroll settings actually cover public holiday entitlements.
• Prevent errors with a simple pre‑holiday workflow: confirm instruments, test payroll settings, plan requests early, and audit a sample after the period.

If you’d like a consultation on setting up compliant public holiday rates and rostering for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.