Casual pay in Australia: loading, penalty rates and what you should be getting

Most jobs at independent local businesses are casual, and casual pay confuses people because the hourly number on the ad is not the whole story. Here is how it fits together, without quoting figures that go out of date every July.

Base rate plus casual loading

Almost every cafe, bar, shop, salon and cleaning job in Australia is covered by a modern award. The award sets a minimum base rate for your role and level. Casuals are then paid a loading on top of that base rate, typically 25 per cent, in exchange for not getting paid leave. So a casual's minimum hourly rate is always higher than a permanent employee doing the same job on a weekday.

Award rates change on 1 July each year. The only reliable source for the current number is the Fair Work pay calculator, which asks for your award, your role and your age and gives you the rate including loading.

Penalty rates for evenings, weekends and public holidays

Awards for hospitality, retail and fast food pay extra for unsocial hours. Saturday, Sunday and public holiday shifts usually attract higher rates, and late evening work often does too. For a lot of local shift work these penalties are where the real money is, so when you compare two jobs, compare the roster, not only the day rate.

Junior rates

Under many awards, employees under 21 are paid a percentage of the adult rate that steps up with age. If you are a student or in your first job, the rate on your pay slip will reflect your age. The Fair Work calculator handles this if you enter your age.

Superannuation

Employers must pay the super guarantee on a casual's ordinary time earnings no matter how few hours they work. It should appear on every pay slip. If you have never chosen a super fund, your employer will use your existing fund via the ATO, or their default fund, so it is worth checking where it is going. The ATO super pages explain how to find and combine accounts.

Pay slips and what to check

• You must get a pay slip within one working day of being paid.
• Check the hourly rate matches the award rate for your age and level, including casual loading.
• Check weekend and public holiday hours are paid at the penalty rate.
• Check super is listed and actually arriving in your fund.
• Check any deductions are ones you agreed to in writing, such as a uniform you chose to buy.

If something looks wrong

Most underpayment at small businesses is a mistake, not malice. Start by asking your employer, with your pay slips and the Fair Work calculator result. If that does not fix it, the Fair Work Ombudsman helps employees for free, and you cannot be sacked for asking about your pay.

Finding better-paid shifts

Ads on My Local Jobs show the pay range up front, and you can filter by job type. If evening and weekend penalties matter to you, set those days in your availability and look for jobs that need weekend cover; those are the ones local businesses struggle to fill.