Casual loading
Casual loading is an Australian pay loading, typically 25%, paid on top of the applicable hourly rate because casual employees do not receive paid annual leave and other entitlements that permanent staff get.
It applies to award/agreement-free casuals on the national minimum wage or modern-award rate, and to award-covered casuals on the award rate. It is not a US overtime premium, not UK worker-status pay, and not a bonus for picking up extra shifts.
Key takeaways
- Compensation for no leave: Casual loading — typically 25% — compensates casual employees who do not receive paid annual leave, sick leave, or notice of termination.
- Award-specific rate: The loading applies on top of the national minimum wage or the modern-award rate covering the role.
- Not US overtime: Casual loading is an Australian industrial-relations concept, distinct from US overtime premiums or shift differentials.
- Not a shift bonus: It is a standing entitlement for casual employment status, not an extra payment for picking up additional shifts.
Common questions
What is casual loading?
Casual loading is an Australian pay premium — typically 25% — paid on top of the applicable hourly rate because casual employees do not receive paid annual leave, sick leave, or notice of termination. It applies to all casual hours under the relevant award or agreement, not just extra or unsocial shifts.
Why do casual workers receive a loading in Australia?
Casual employees trade permanent entitlements for a higher hourly rate. The loading compensates for missing paid leave and termination notice — it is a standing entitlement tied to casual employment status, not a bonus for picking up additional shifts.
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