Public Holidays Rates in Australia - A State-by-State Guide for Employers

Public holidays in Australia are not just a chance to party and relax but also come with employer responsibilities. With public holidays observed nationwide and additional ones specific to each state, businesses must keep track of them appropriately. This can obviously be a big job when every state and territory has different holidays.

Public holidays are also important for workplace morale and acknowledging the cultural events of each area. From fun times to times of reflection, these holidays bring communities together. For employers, recognising and planning for these holidays can create a positive work environment and happy employees.

Let’s look at the public holidays, the hidden ones that don’t always make the news and give employers the info they need to run their business smoothly.

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These days are significant for various cultural, historical, and religious reasons, and they differ across states and territories. 

Employees are compensated for their ordinary hours even if they are not working on a public holiday. For employers, it’s essential to recognise these days and understand the entitlements that come with them. 

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These rates are determined by the specific award or enterprise agreement that covers the employee. 

The Fair Work Commission provides tools to help calculate these rates, ensuring employers apply the correct penalty rates. 

For instance, in the hospitality industry, public holiday rates are typically 225% of the base hourly rate, while in the general retail industry, they are usually 250%. 

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These entitlements are governed by the National Employment Standards (NES), awards, and enterprise agreements, which outline employers' and employees' rights and obligations.

Who is Entitled to Public Holiday Pay?

Public holiday pay is a crucial aspect of employee entitlements in Australia. Under the National Employment Standards (NES), full-time, part-time, and casual employees are entitled to specific benefits on public holidays. However, the conditions may vary based on the award or enterprise agreement.

• Full-Time Employees: If a public holiday falls on a day a full-time employee would normally work, they are entitled to a paid day off at their base rate. Should they work on a public holiday, they are entitled to a public holiday rate, often paid at a penalty rate of around 250% of their base pay.
• Part-Time Employees: Similar to full-time employees, part-time employees are entitled to a paid day off if the public holiday falls on a day they usually work. If they work on a public holiday, they receive public holiday rates paid at a penalty rate, though specific conditions may vary.
• Casual Employees: Casual employees do not receive payment for public holidays, and they do not work. However, if they work on a public holiday, they are entitled to public holiday rates paid at a penalty rate, typically around 250% of their base pay.

Employers must consult the relevant award or enterprise agreement to determine the specific entitlements for their employees, ensuring compliance with public holiday pay rates and maintaining fairness in the workplace.

What Happens When a Public Holiday Falls on a Weekend?

When a public holiday falls on a weekend, employee entitlements can vary depending on the award or enterprise agreement. Generally, employees who work on a public holiday that falls on a weekend are entitled to higher penalty rates.

• Weekend Public Holidays: If a public holiday falls on a Sunday, employees may be entitled to Sunday penalty rates, usually higher than weekday rates. The exact rates can differ based on the industry, occupation, and location.
• Substitute Public Holidays: Sometimes, a substitute public holiday may be declared on a weekday if the original public holiday falls on a weekend. Employees may then be entitled to the public holiday benefits on the substitute day. However, this can vary, so checking the specific award or enterprise agreement is essential.

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These public holidays across all states and territories are a time to reflect and have fun. 

The main national public holidays are:

• New Year’s Day (January 1): Celebrated nationwide, the start of the new year and often with fireworks and parties.
• Australia Day (January 26): The day that marks the arrival of the First Fleet at Port Jackson in 1788. Ceremonies, picnics and fireworks.
• Good Friday: A religious holiday observed by Christians, is between March 20 and April 23 each year and is part of the Easter celebrations.
• Easter Monday: The day after Easter Sunday, the resurrection of Jesus Christ, is a public holiday across the country.
• ANZAC Day (April 25): A day to remember those who served and died in wars, with dawn services around the country.
• Labour Day: The date varies, but this holiday celebrates workers and usually involves parades and community events.
• Christmas Day (December 25): A public holiday, family gatherings, presents and feasting.
• Boxing Day (December 26): The day after Christmas, sales and sports.

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Note that these dates may change slightly each year but are accurate as at the time of this article’s publication. 

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Most payroll systems have mechanisms to make this easier. They will automatically apply the penalty rate to timesheets that fall on public holidays. But here are some things to consider:

• Public Holiday Not Worked: Use a specific work type for full time and part time staff when they don’t work on a public holiday so the correct entitlements are recorded and processed.
• State-Specific Regulations: Each state has different rules around public holidays. Make sure your payroll settings reflect the relevant state laws.

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• The nature of the business and its operations
• The employee’s personal circumstances such as family responsibilities
• The amount of notice given by the employer

Employees can refuse a request to work on a public holiday if the request isn’t reasonable or if they have a valid reason to refuse. Clear communication between employer and employee is key to a fair and transparent process.

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Unlike full-time or part-time employees, casual employees are generally not entitled to payment for public holidays they do not work. 

However, when they work on a public holiday, they are usually paid a higher penalty rate. Most awards stipulate that casual employees receive public holiday rates paid at a penalty rate for hours worked on a public holiday. 

This rate is often around 250% of their base pay. It’s crucial for employers to consult the relevant award or enterprise agreement to determine the specific entitlements for casual employees, ensuring compliance and fairness in the workplace.

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• Communication: Inform staff of holiday entitlements to ensure clarity and satisfaction.
• Compliance: Review holiday policies regularly to stay up to date with changes in legislation. This may involve HR consultations or legal reviews.
• Document Everything: Keep records of staff schedules and holiday entitlements so it’s transparent and easy during audits.

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With multiple holidays in different regions, employers can increase workplace satisfaction and compliance with the law.

Public holidays are about more than just a day off. It’s an opportunity for employers to show appreciation for their staff, promote community spirit and align with the cultural events that matter to their employees. Knowing what holidays apply to your business means that your business will run smoothly, especially with a diverse workforce.