Casual Loading Calculator Australia: How to Calculate Your 25% Casual Loading (FY 2025-26)

If you work as a casual employee in Australia, you are entitled to a casual loading of 25% on top of the base hourly rate for equivalent permanent employees. This loading compensates you for not receiving paid leave entitlements like annual leave, sick leave, and public holidays. Understanding how casual loading works, which awards apply, and how to calculate your total hourly rate is essential — whether you are an employee checking your pay or an employer ensuring you meet your obligations under the Fair Work Act.

What Is Casual Loading in Australia?

Casual loading is an additional payment — typically 25% — added to the base hourly rate paid to casual employees. It compensates for the fact that casuals do not receive paid annual leave, paid personal/carer's leave, paid compassionate leave, or paid public holiday leave that permanent employees are entitled to under the National Employment Standards (NES).

The 25% casual loading is the legislative minimum. However, some modern awards, enterprise agreements, or individual employment contracts may provide a higher loading. For example, certain hospitality and retail awards specify additional casual loadings in specific circumstances.

The casual loading is separate from, and paid on top of, any other loadings or penalty rates you may be entitled to (such as shift work, overtime, or weekend penalties). This means you can receive casual loading plus your applicable penalty rates on top.

As of July 2021, the Fair Work Act was amended to include a formal definition of a "casual employee." Under this definition, you are a casual employee if the offer of employment makes no firm advance commitment to ongoing work with an agreed pattern of hours. This definition helps clarify who qualifies for casual loading and related entitlements. For help with other employment-related tax calculations, see our take-home pay calculator.

Who Is Entitled to Casual Loading?

Not all casual workers automatically receive a 25% loading. The amount depends on the award or agreement that covers the employment. However, if no award or agreement applies, the casual loading is 25% of the minimum hourly rate for the equivalent permanent role.

Employees covered by a modern award such as the General Retail Industry Award, Hospitality Industry Award, or Clerks Award are generally entitled to a 25% casual loading on top of the applicable classification rate specified in that award. Some awards specify slightly different loadings — for example, the Meat Industry Award provides a 25% loading for some classifications and a different percentage for others.

Importantly, if you are already receiving above-award pay, your employer may have already included the casual loading in your overall hourly rate. In such cases, you are not entitled to the loading again separately. Employers should clearly state on payslips what portion of the hourly rate represents base pay and what portion represents casual loading.

Since March 2021, casual employees also have a right to request conversion to permanent employment after 12 months of regular, ongoing shifts (with some exceptions for small businesses). To understand how your income tax obligations change when moving from casual to permanent, check our income tax guide.

How to Calculate Your Casual Rate (FY 2025-26)

Calculating your casual hourly rate is straightforward. Start with the base hourly rate for your classification (from your award or the national minimum wage), then multiply by 1.25 to add the 25% casual loading.

The formula: Casual Rate = Base Hourly Rate × 1.25

For example, if the base rate for your classification is $30 per hour, your casual rate would be $30 × 1.25 = $37.50 per hour. This $7.50 loading compensates you for the value of leave entitlements you miss out on as a casual employee.

Below is a table showing how the casual loading applies at different base rates relevant to FY 2025-26, including the updated national minimum wage that applies from 1 July 2025.

Casual Loading and Penalty Rates: How They Interact

One common area of confusion is how casual loading interacts with penalty rates. The general rule is that casual loading applies to the base rate, and penalty rates (for weekends, public holidays, late nights, or overtime) are then calculated on the casual-loaded rate.

For example, if a casual retail worker earns a total casual rate of $32.73 per hour (as shown above), and they work a Sunday shift where the award provides a 50% penalty, they would earn $32.73 × 1.50 = $49.10 per hour for that shift. The penalty is applied on top of their casual rate, not in place of it.

However, some modern awards use a single "loaded rate" that already incorporates both the casual loading and any applicable penalty rates into one all-purpose hourly rate. In these cases, the all-purpose rate replaces the need to calculate loading and penalties separately. Always check your specific award or enterprise agreement to understand how penalties apply.

If you also receive allowances or reimbursements from your casual job, these may affect your Medicare levy calculations. Check our medicare levy guide to understand how your total income — including casual loading — determines your levy obligations.

Casual Loading and Superannuation

Your casual loading amount is considered ordinary earnings for superannuation purposes. This means your employer must pay the superannuation guarantee on your total casual rate, including the loading component.

For FY 2025-26, the Superannuation Guarantee rate is 12%. Your employer must pay this on your gross earnings (including casual loading) into your nominated super fund. If you earn a casual rate of $37.50 per hour and work 30 hours per week, your employer contributes 12% of $1,125 ($135) to your super each week.

Starting from 1 July 2026, the SGC rate rises to 12.5%, so your employer will need to contribute more on your behalf. Many casual workers don't realise that casual loading increases their super contributions proportionally, which is a significant long-term benefit. Use our superannuation calculator to see how your casual earnings build your retirement savings.

If you salary sacrifice part of your casual earnings, note that salary sacrifice arrangements are less common for casual employees, but they are still possible in many workplaces. See our salary sacrifice calculator to learn more.

Casual Conversion Rights: Moving from Casual to Permanent

Since March 2021, casual employees have the right to request conversion to permanent (full-time or part-time) employment after 12 months of regular employment with the same employer. This right was strengthened under the Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Act 2021.

When you convert to permanent employment, you will typically lose the 25% casual loading but gain paid leave entitlements. For many workers, this trade-off is financially neutral or beneficial because paid annual leave (4 weeks = 7.7% of the year), paid personal leave (10 days = 3.8%), and paid public holidays offset most of the 25% loading.

Employers can refuse casual conversion on reasonable grounds, such as if the role is genuinely short-term or the hours are unpredictable. However, they must provide reasons in writing. Small businesses (fewer than 15 employees) are exempt from casual conversion obligations, though many still offer it voluntarily.

Moving from casual to permanent can significantly affect your take-home pay. Use our take-home pay calculator to compare your net income as a casual versus a permanent employee.

Common Questions About Casual Loading

Many workers and employers have questions about how casual loading applies in different situations. Below we answer the most common ones to help you understand your rights and obligations.

Frequently Asked Questions

Is casual loading always 25%?

The standard casual loading under the National Employment Standards is 25%. However, some modern awards, enterprise agreements, or individual contracts may specify a different rate. Always check the specific instrument that covers your employment. Some awards provide higher loadings (up to 30% in specific circumstances), while very few provide less.

Do I get casual loading on public holidays?

Yes. If you work on a public holiday as a casual employee, you are entitled to your casual loading rate plus any applicable public holiday penalty rates specified in your award. Casual employees do not receive paid public holiday leave, but you are paid more if you actually work on the day. The exact rate depends on your award.

Does casual loading apply to overtime?

Yes, the casual loading is included in your ordinary rate, and overtime rates are then calculated based on your casual-loaded ordinary rate. For example, if your casual rate is $37.50 per hour and you work overtime at time-and-a-half, your overtime rate would be $37.50 × 1.5 = $56.25 per hour.

Can my employer include casual loading in a flat hourly rate?

Yes, some employers pay a single "loaded rate" that includes both the base rate and the casual loading. However, your payslip must clearly show how much is base rate and how much is casual loading. This transparency is required under the Fair Work Act to ensure you can verify you are receiving the correct entitlements.

Is casual loading counted in my superannuation contributions?

Absolutely. Your casual loading is part of your ordinary time earnings, so your employer must pay the superannuation guarantee (12% in FY 2025-26) on your total casual rate, including the loading. This is one of the hidden benefits of casual employment — your super contributions are higher because of the loading.