Public holidays are great for morale, but they can turn payroll into a puzzle. Different awards, penalty rates and roster arrangements will affect what you should pay an employee who works (or doesn’t work) on a public holiday.
If you’re looking for a simple “public holiday pay calculator”, the most reliable approach is to combine Fair Work’s Pay and Conditions Tool (PACT) with your award or enterprise agreement, and then reflect those settings clearly in your contracts and rosters. In this guide, we’ll step you through how public holiday pay works in Australia, how to calculate it in practice, and what to watch out for so you stay compliant and pay your team correctly.
How Do Public Holidays Work In Australia?
Australia has national public holidays (like New Year’s Day) and additional state or territory holidays (for example, Labour Day or regional show days). Your obligations depend on where the employee’s workplace is based and what their applicable modern award or enterprise agreement says.
- Public holidays are set under state and territory laws as well as the Fair Work system. Some dates shift if a holiday falls on a weekend (e.g. an additional “observed” Monday).
- Employees don’t have to work on a public holiday. You can request they work, and they can refuse, but in both cases the decision must be reasonable in the circumstances.
- If a public holiday falls on a rostered day off, your award or agreement will set out whether there’s a substitute day, extra pay or no additional entitlement - check the clause carefully.
There’s also an important National Employment Standards (NES) rule that applies regardless of award coverage: if a public holiday falls during a period of paid annual leave or paid personal/carer’s leave, that day is not deducted from the employee’s leave balance and should be treated as a public holiday. Long service leave is governed by state and territory legislation, so the position can differ there.
Public Holiday Pay Rates: The Basics
In most awards, employees who work on a public holiday are entitled to a penalty rate (often a multiple of the base rate for each hour worked). Employees who would ordinarily work that day but don’t work are generally entitled to their base pay for the ordinary hours they would have worked.
The exact multiplier depends on the relevant modern award or enterprise agreement. If your business is award-covered, you’ll need to look up the specific clause for public holidays and match it to the employee’s classification and hours.
- Penalty rates: These are higher pay rates for specific times or days, including public holidays. A short refresher on how these loadings work is available in our overview of penalty rates.
- Base rate vs OTE: Base rate is the ordinary rate of pay. Ordinary Time Earnings (OTE) is the concept used for superannuation. As a general rule, OTE includes ordinary hours worked (even on a public holiday) but excludes overtime. If you’re unsure when super applies, see our guide to ordinary time earnings.
- Weekends vs public holidays: Weekend loadings and public holiday loadings are different and can apply differently even if the holiday falls on a weekend. If weekends are common in your roster, it’s worth revisiting weekend pay rates.
Some awards allow alternatives to public holiday penalty rates, such as providing a paid substitute day off by mutual agreement. If you opt for time off instead of extra pay, ensure the arrangement is permitted by your award or agreement and document the agreement with the employee in writing.
Public Holiday Pay Calculator: A Step-By-Step Method
There isn’t a single universal calculator because rates vary by award, classification and jurisdiction. However, you can calculate public holiday pay using a consistent process with the Fair Work PACT and your payroll system.
1) Confirm Coverage, Classification And Ordinary Hours
Identify the correct modern award or enterprise agreement and the employee’s classification level. Confirm their ordinary hours per week, the usual roster pattern, and whether the public holiday falls on a day they ordinarily work.
2) Check The Award Or Agreement’s Public Holiday Clause
Locate the clause setting out public holiday entitlements. You’re looking for:
- The penalty rate if the employee works on the day
- Minimum engagement requirements (e.g. a minimum of three hours)
- Entitlements if the employee is ordinarily rostered but does not work
- Whether a substitute day off or time off in lieu is allowed and on what terms
3) Use Fair Work’s PACT To Confirm The Rate
Once you know the award, level and hours, use Fair Work’s Pay and Conditions Tool to check the applicable multiplier and dollar figure. If you need a refresher on the inputs and filters, our walkthrough on how to use the Fair Work Pay Calculator will help you avoid common mistakes.
4) Apply The Multiplier And Check Any Minimums
Multiply the base hourly rate by the public holiday penalty rate for the hours worked. If the award sets a minimum engagement (for example, three hours), you must pay at least the minimum at the public holiday rate even if the shift was shorter.
5) Consider Time Off In Lieu (Where Permitted)
Some awards let you agree with an employee to take time off instead of receiving public holiday penalty rates. If you use time off in lieu (TOIL), keep the agreement in writing, track the balance accurately and make sure the timing of the TOIL is compliant. For a broader view of swap-for-time arrangements, see time off in lieu.
6) Check Superannuation, Tax And Payslips
Calculate superannuation on eligible OTE amounts (for most public holiday ordinary hours) and process tax in line with your payroll settings. It’s good practice for payslips to clearly indicate the hours and rate type applied, noting there are minimum payslip content requirements under the Fair Work Regulations.
Quick reminder: payroll tax, PAYG withholding and superannuation obligations can change over time and may vary by state or territory. If you’re unsure, it’s sensible to check the current rules or get support from your accountant or payroll advisor.
Worked Example (Illustrative Only)
Imagine a Level 3 retail employee covered by the General Retail Award, rostered Mondays 9am–5pm. A Monday is declared a public holiday in the employee’s state and they work the full eight-hour shift.
- Coverage: Confirm the award (General Retail Award) and classification (Level 3).
- Clause: Locate the public holiday clause setting out the penalty rate and any minimum engagement.
- Rate: Use PACT to confirm the current hourly base rate and the public holiday multiplier for Level 3.
- Calculation: Multiply the base rate by the public holiday multiplier for eight hours. Check if any minimum engagement applies (it usually will be less than eight hours here, so the eight hours stands).
- Super: If the award treats these as ordinary hours (and not overtime), include them in OTE for superannuation purposes.
- Payslip: Show the hours and the public holiday rate type clearly so the employee can understand the calculation.
Always check your exact award clause for the specific multiplier and any additional allowances that may apply to your scenario.
Common Public Holiday Scenarios (And How To Handle Them)
Do I Have To Pay Someone Who Doesn’t Work On The Public Holiday?
Generally, if the employee would ordinarily work that day (based on their regular roster or ordinary hours), they’re entitled to their base rate of pay for those ordinary hours. If they wouldn’t ordinarily work that day, there’s usually no entitlement. Always confirm the award or agreement clause for your team.
What If A Public Holiday Falls On A Rostered Day Off?
Many awards include rules about substituted days off or other entitlements if a public holiday falls on a non-working day. The details vary, so check your award and record any agreed substitution in writing to avoid confusion later.
Can I Require Staff To Work On A Public Holiday?
You can request an employee work on a public holiday if the request is reasonable (considering the nature of your business, the employee’s personal circumstances, whether there’s additional pay, and whether they’re casual or permanent). Employees may refuse if their refusal is reasonable. Set expectations in your Employment Contract and rosters, then assess reasonableness case by case.
How Do Public Holidays Work For Casual Employees?
Casual employees who work on a public holiday are usually entitled to the public holiday penalty rate on top of their casual loading, as set by the award. If a casual employee doesn’t work on the day, they generally don’t get paid (because casuals don’t have paid leave), unless your award or agreement provides otherwise. Make sure your Employment Contract for casuals reflects the correct loading and minimum engagement requirements.
Do I Pay Overtime On A Public Holiday?
Overtime is separate from the public holiday rate. Some awards apply the higher of the two, others apply a specific public holiday rate for all hours worked on the day. Many awards include a dedicated public holiday clause that replaces the usual overtime rate for those hours. The detail is award-specific, so double-check how your award defines overtime if it occurs on a public holiday. For broader context, see our explainer on overtime rates.
Can We Offer A Substitute Day Off Instead Of Paying The Penalty Rate?
Some awards allow you to agree with an employee to take a paid substitute day off rather than the public holiday penalty rate. Ensure the substitution is permitted, the agreement is genuinely mutual, and the arrangement is documented. Keep your payroll and rostering systems aligned so balances are tracked accurately.
Does Super Apply To Public Holiday Penalty Rates?
Super follows OTE rules. If the hours are ordinary hours worked (even on a public holiday), they typically count towards OTE and attract super. If the hours are overtime, they usually don’t count towards OTE. When in doubt, revisit your award’s definition of ordinary hours and the ATO’s approach to ordinary time earnings.
What Happens If A Public Holiday Falls During Paid Leave?
Under the NES, if a public holiday falls during paid annual leave or paid personal/carer’s leave, that day is not deducted from the leave balance and should be treated as a public holiday instead. Enterprise agreements and awards can offer additional benefits, but they can’t reduce this NES entitlement.
What To Include In Your Employment Documents
Clear documents make public holiday calculations much easier day to day. At a minimum, make sure your employment agreements and policies align with your award or enterprise agreement and reflect how your business actually rosters staff.
- Employment Contract (Full-Time/Part-Time): Include classification, ordinary hours, rostering approach, public holiday expectations and any TOIL arrangements permitted by your award.
- Employment Contract (Casual): Set out the casual loading, minimum engagements and how public holiday shifts are paid under the applicable award.
- Award compliance: If you’re unsure which award applies or how to implement it across rosters and payroll, a compliance review can translate award rules into practical settings.
- Payroll configuration: Configure multipliers, minimum engagements and label types correctly so the right rates flow automatically and payslips include the information employees need to understand their pay.
- TOIL and rostering policy: If you allow time off in lieu, make sure your policy aligns with your award and that any individual agreements are recorded in writing.
It’s also smart to train managers on the basics of public holiday rules so they don’t make ad hoc promises or roster changes that conflict with the award or agreement.
Practical Tips To Stay Compliant (And Save Time)
- Plan rosters early: Public holidays are predictable. Publish rosters well in advance and confirm availability to reduce last-minute disputes.
- Check jurisdictions: If you operate in multiple states or territories, confirm which holidays apply at each location.
- Lock in payroll settings: Build award multipliers and minimum engagement rules into your payroll system so calculations are consistent.
- Record substitutions: If you agree on a substitute day or TOIL, keep a written record and maintain accurate balances.
- Refresh contracts: Review your Employment Contracts when awards change or your rostering model evolves.
- Audit regularly: A periodic award compliance check can catch underpayment risks before they become costly.
Key Takeaways
- Public holiday entitlements depend on your award or enterprise agreement, the employee’s ordinary hours and whether they work on the day.
- Use Fair Work’s PACT to confirm the correct multiplier and dollar figure, then apply the award clause rules for minimum engagements and substitutes.
- Employees who ordinarily work that day but don’t work are generally paid their base rate for ordinary hours; casuals usually only get paid if they work, unless the award says otherwise.
- Under the NES, a public holiday during paid annual leave or paid personal/carer’s leave is not deducted from the leave balance.
- Superannuation generally applies to ordinary hours worked on a public holiday under OTE rules, but not to overtime.
- Clear Employment Contracts, aligned rosters and periodic award compliance reviews make public holiday pay straightforward and defensible.
If you’d like a consultation on setting up public holiday pay correctly for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
