Australia Public Holiday Penalty Rates 2026: Modern Award Calculations & Rules

1. The National Employment Standards (Part 2-2, Division 10)

The Fair Work Act establishes the baseline rule: employees have the right to be absent from work on a public holiday without loss of base pay if the day falls on their normal roster pattern. The NES defines statutory public holidays across Australia and provides the rules for reasonable work requests, employee refusals, and leave deductions.

2. Modern Awards and Enterprise Agreements

While the NES guarantees paid time off for permanent workers who do not work, it does not set the specific dollar rate for those who do work. That function is handled by 121 industry and occupational Modern Awards. Each award sets its own penalty rate percentages, minimum shift engagements, and rules for taking time off in lieu instead of premium pay.

Step 1: Identify Your Minimum Base Hourly Rate

Locate your classification level in your Modern Award to find your ordinary hourly rate. This must be the base rate, excluding casual loadings, weekend penalties, allowances, or overtime premiums.

Step 2: Find Your Award Public Holiday Percentage

Consult the overtime and penalty rate clause in your award. Modern Awards specify public holiday pay as a percentage of the minimum hourly rate (for example, 225%, 250%, or 275%).

Step 3: Check Minimum Engagement Hours

Most awards require employers to pay for a minimum number of hours when a worker reports for duty on a public holiday, even if the shift finishes early. Common minimum engagement minimums are:

• General Retail Industry Award: 3 hours minimum.
• Hospitality Industry (General) Award: 2 hours for casuals; 4 hours for full-time and part-time staff.
• Clerks Private Sector Award: 4 hours minimum.
• SCHADS Award: 2 hours for casual home care; 4 hours for community service workers.

Step 4: Apply the Mathematical Formula

For permanent full-time and part-time staff:

For example, consider a permanent Level 1 retail employee with an ordinary rate of $26.00 per hour working a 6-hour shift on Easter Monday under the General Retail Industry Award (225% penalty):

To calculate working days and plan schedules between public holiday dates, you can use our Working Days Calculator.

1. Full-Time Employees

• If you do not work: You receive your ordinary base pay for your standard hours (usually 7.6 hours) provided the holiday falls on a normal working day. No shift loadings, weekend premiums, or overtime are added.
• If you do work: You receive the full award public holiday penalty rate for every hour worked, subject to the minimum engagement rule.

2. Part-Time Employees

• If you do not work: You are entitled to be paid for the holiday only if the public holiday falls on a day you are normally rostered to work. If Monday is not part of your agreed working pattern, you do not receive payment for an Easter Monday or Labour Day closure.
• If you do work: You receive the public holiday penalty rate for all hours worked, plus any agreed part-time allowances.
• Roster alterations: Employers cannot adjust part-time rosters specifically to avoid public holiday pay obligations. If your roster is changed without valid operational reasons, you may challenge the adjustment under the Fair Work Act General Protections provisions.

3. Casual Employees

• If you do not work: Casual employees have no entitlement to payment for public holidays on which they do not work.
• If you do work: Casuals receive premium rates. Most modern awards deal with casual loading on public holidays in one of two ways: either the penalty rate is calculated as a single flat figure that incorporates the casual loading (for example, 250% of the base rate in the Clerks Award), or the award adds the 25% casual loading to a permanent penalty rate (250% + 25% = 275% in SCHADS).

The Anti-Pyramiding Principle

Virtually all Modern Awards contain an anti-pyramiding clause. This rule states that penalty rates, overtime rates, and special allowances do not multiply on top of one another unless explicitly stated in the award text.

Instead, the employer applies the higher single applicable rate:

• If ordinary public holiday work pays 250%, and normal overtime pays 150% for the first two hours and 200% thereafter, the employee receives 250% for all hours worked. You do not calculate 250% × 150% (which would produce an inaccurate 375%).
• Certain awards (such as the Building and Construction General On-Site Award) specify dedicated public holiday overtime rates, often setting overtime worked on a public holiday at 250% for all hours, including meal break penalties.

What Makes a Request or Refusal Reasonable?

Section 114(4) lists the statutory factors courts evaluate:

• Nature of the Workplace: Is the business an essential or continuous operation, such as a hospital, aged care facility, hotel, or emergency service?
• Personal Circumstances: Does the employee have family caring responsibilities, childcare issues, or religious commitments on that date?
• Remuneration: Does the worker receive penalty rates, overtime, or a salary that fairly reflects working on public holidays?
• Advance Notice: Did the employer give sufficient notice when requesting holiday work, and did the employee give sufficient notice when refusing?
• Employment Category: Is the worker full-time, part-time, or casual?

In 2023, the landmark Federal Court decision in CFMEU v OS MCAP Pty Ltd reaffirmed that employment contracts cannot contain blanket clauses forcing staff to work all public holidays automatically. An employer must make an actual request, giving the worker an opportunity to accept or reasonably decline.

1. State-Declared Substitute Holidays

When major holidays land on a Saturday or Sunday, state governments proclaim substitute days. For example, if Australia Day (January 26) falls on a Sunday, the statutory public holiday transfers to Monday, January 27. When this occurs, penalty rates apply to the official substitute Monday in most award jurisdictions. For a detailed breakdown of state rollover mechanisms, see our guide on Weekend Holiday Rollover Rules.

2. Award-Based Day in Lieu (DIL) Agreements

Many awards permit an employer and an individual employee to agree to alternative arrangements instead of receiving high cash penalties:

• Payment at 100% plus Time in Lieu: The worker is paid standard base rates for hours worked on the holiday and receives equivalent paid time off (TOIL) added to their leave balance.
• Payment at 125% plus Annual Leave Day: Under the Hospitality Award, an employer and permanent employee can agree to work at a lower penalty rate (such as 125%) in exchange for an extra day of paid annual leave.

Public Holidays During Annual Leave (Section 89)

Under Section 89(2) of the Fair Work Act, if a gazetted public holiday falls during an employee period of approved paid annual leave, the employee is taken not to be on annual leave on that day. The employer must pay the employee base pay for the public holiday, and no deduction can be made from their accumulated annual leave balance.

Public Holidays During Sick Leave (Section 98)

Under Section 98, if a public holiday occurs while an employee is taking paid personal or carer leave, the employee is treated as observing the public holiday. The day is paid as a public holiday, and no deduction is made from their sick leave balance.

Good Friday and Christmas Day

Good Friday and Christmas Day hold special status under retail trading legislation in states such as New South Wales, Victoria, and Western Australia. Most major retail establishments are prohibited from opening, with exceptions for essential services like service stations and pharmacies. Where businesses do operate, standard Modern Award public holiday penalty rates apply.

Christmas Eve and New Year Eve Part-Day Holidays

South Australia and the Northern Territory have gazetted part-day public holidays from 7:00 PM to midnight on Christmas Eve (December 24) and New Year Eve (December 31). Employees working during these five evening hours must be paid full public holiday penalty rates, while day shifts prior to 7:00 PM are paid at standard ordinary rates. You can inspect opening schedules for essential retail and services in our What Stays Open on Public Holidays Guide.