Money
How casual loading works in Australia
Casual workers are paid extra per hour because they don't get paid leave.
Many awards add a loading, commonly 25%, to the hourly rate of casual employees. It's paid in place of benefits permanent staff get, such as paid annual leave, personal leave and notice of termination. Your award or agreement sets the real percentage.
The two conversions
| You want | Formula | Example at 25% |
|---|---|---|
| Casual rate from base | Base × 1.25 | $30 → $37.50 |
| Base rate from casual | Casual ÷ 1.25 | $37.50 → $30.00 |
💡 Pro Tip: Taking 25% off a casual rate gives the wrong answer. $37.50 less 25% is $28.13, not $30. Always divide by 1.25.
Comparing a casual and a permanent job
Compare permanent pay with casual pay by thinking about unpaid weeks. A permanent worker is paid when on leave. A casual who takes four weeks off gets nothing for those weeks, so the loading needs to cover that. The same hourly figure can be better or worse depending on how many hours you actually work.
✨ Key Takeaways
- Casual rate = base × (1 + loading).
- To reverse it, divide by (1 + loading), not subtract.
- Check your award for the correct percentage and for penalty rates.
Open the casual loading calculator →
You may also like…
How compound interest works, with regular contributions
Why time and regular saving matter more than compounding frequency, and how inflation chan…
How Australian income tax works, with worked examples
Understand tax brackets, the Medicare levy and why a pay rise never leaves you with less t…
How gross pay becomes take-home pay in Australia
Read each line of your payslip, see how tax and Medicare are worked out, and why residents…
How a mortgage offset account works
See how a savings balance reduces the interest on your home loan, with the dollars worked …
How HECS-HELP repayments work
How your compulsory repayment is set, how indexation affects the balance, and what changed…
Birthday and gift planning made easy
Keep dates and gift ideas in one place and check it monthly.