Casual Loading Australia (2026): 25% Explained

Casual loading is the extra pay casual employees receive instead of paid annual leave, paid personal leave, notice of termination and redundancy pay. Under most modern awards it is 25% of the minimum hourly rate. How it combines with weekend, overtime and public holiday rates depends on the award, so always check the Fair Work pay guide.

This guide explains the rule, the award-by-award differences, super and worked examples for employers and workers. General information, not legal advice. Yakka Labour is the casual hiring marketplace, not the workwear brand with a similar name.

What is the casual loading percentage in Australia?

Fair Work defines a casual employee partly by being entitled to a casual loading or a specific casual pay rate under an award, agreement or contract (see Fair Work: casual employees). Each award sets its own loading. Every award checked for this guide sets it at 25%:

Enterprise agreements can set different casual rates, and award-free casuals have a loading set by the national minimum wage order. Check yours on Fair Work rather than assuming.

How do you calculate casual loading?

Take the minimum hourly rate for the classification and multiply by 1.25. Using the Storage Services and Wholesale Award from 1 July 2026: a Storeworker grade 2 has a minimum hourly rate of $27.97, so the casual rate is $27.97 × 1.25 = $34.96 (rounded as shown in the award). For an 8-hour weekday shift that is $279.68 before tax.

In construction the base is different. The Building and Construction award defines the ordinary hourly rate as the classification rate plus the industry allowance, which is paid for all purposes. So a casual labourer's 25% is applied to a higher base than the classification table alone suggests. The exact casual figures are in the award's pay guide.

Does casual loading apply on weekends and public holidays?

It depends on the award, which is why a single online casual loading calculator can mislead. In the awards checked for this guide, the casual weekend rate equals the permanent penalty plus 25 percentage points, but the penalties themselves differ:

Percentages are of the minimum or ordinary hourly rate as defined in each award, from the consolidated award texts current to 1 July 2026. Other awards use different structures, including evening penalties, so read your own.

Worked example: Sam is a grade 2 casual storeperson under the Storage Services award. On a Sunday he works 6 hours. The award's casual Sunday rate is 225% of the $27.97 minimum hourly rate, or $62.93/hr, so he earns $377.58 for the shift. Two common errors: adding another 25% on top of the casual Sunday rate, which overpays, or paying the permanent Sunday rate of 200%, which underpays.

Does casual loading count for super?

Yes. The ATO's list of qualifying earnings shows casual loading as both ordinary time earnings and qualifying earnings, so super guarantee is payable on it. Since 1 July 2026, super guarantee is 12% of qualifying earnings and must generally reach the fund within seven business days of payday under Payday Super. Overtime hours are generally not ordinary time earnings, even though the casual premium is built into the overtime rate.

How does casual loading work in construction?

The Building and Construction General On-site Award says a casual must be paid a 25% loading for ordinary hours, as compensation for annual leave, personal leave, community service leave, notice, redundancy and public holidays not worked. Casuals also get a minimum of 4 hours' pay per engagement plus fares and travel entitlements.

For overtime and weekend work, the award replaces 150% with 175% and 200% with 225% for casuals, and a casual working a public holiday gets 275%. Example: a CW1 casual labourer works a Saturday on a Parramatta site from 7am to 1pm. The first 2 hours are paid at 175% of the ordinary hourly rate and the next 4 hours at 225%, because work after 12 noon and after the first 2 hours moves to the higher rate. Level details are in building and construction award levels.

Is casual loading worth it compared with permanent work?

For workers, 25% more per hour buys flexibility but not security: no paid annual or sick leave, no notice and no redundancy pay. Casuals still get unpaid carer's leave and other NES protections. After 6 months (12 months with a small business), a casual who believes they no longer fit the casual definition can give notice to change to permanent under the employee choice pathway. Our guide to casual employee rights covers this.

For employers, casual loading is a known cost in exchange for flexibility. Budget it with super, workers compensation and payroll tax. The practical steps are in how to pay labourers.

What are the most common casual loading mistakes?

• Calling someone casual but rostering them like a permanent: the casual definition depends on whether there is a firm advance commitment to ongoing work. A regular, guaranteed roster may point the other way.
• Paying a flat rate that falls below the award on weekends: a $35/hr flat rate may cover weekday casual minimums but not a Sunday at 225%.
• Using the wrong base: in construction, forgetting that the all-purpose industry allowance forms part of the ordinary hourly rate.
• Ignoring the minimum engagement: each award sets a minimum paid period for casual shifts, such as 4 hours under the construction and storage awards and 2 hours under the hospitality award, so sending a casual home early still costs the minimum.
• Skipping super on the loading: casual loading is qualifying earnings, so super is payable on it.
• Not putting it in writing: the construction award requires employers to tell a casual in writing who employs them, the job, the classification level and the rate of pay.

How do I hire or find casual work on Yakka?

Hirers post a job with the suburb, start time, tickets and an AUD hourly rate, then agree the rate directly with each worker in the app and pay through the platform. State whether the rate already includes casual loading so nobody is confused. For weekend or night work, list the rate for each shift type separately rather than one blended figure, and check each one against the award's casual table before you post. Workers create a free profile, list their tickets and apply for shifts near them on casual jobs or general labourer listings.

Hire casual labourers on Yakka · Download the Yakka app