This article is for general reference purposes. Please refer to Fair Work for your state and industry compliance.
Public Holidays in Australia: What Employers Need to Know
Public holidays aren’t just about long weekends and downtime — for employers, they come with important responsibilities. If you run a business, it’s essential to know when public holidays occur, how they affect your team, and how to manage payroll correctly.
Here’s what you need to know.
To Open or Not to Open?
Before a public holiday arrives, decide whether your business will open or close. This often depends on your industry, location, and demand.
Key things to consider:
- Are you likely to generate enough revenue to cover additional wage costs?
- Can you operate efficiently with fewer staff?
- Do you have team members available who are willing and affordable to roster?
- Is it more cost-effective to stay closed?
Some businesses may scale down operations with a reduced team and limited services to stay profitable. Others may find that closing altogether is the smarter choice.
Public Holiday Pay – Who Gets What?
If Employees Don’t Work:
- Full-time and part-time employees must be paid their base rate for their usual hours if the public holiday falls on a day they normally work.
- Part-time employees who are not usually rostered that day are not entitled to payment. If they are rostered on the day that the public holiday falls, then they do get the public holiday payment.
- Casual employees do not get paid if they don’t work on the public holiday.
If Employees Do Work:
Employers are required to pay penalty rates, as specified by the employee’s award or agreement.
- These rates are typically higher than the base rate, often double time or more.
- Some employers offer:
- A substitute day off
- Extra annual leave
These arrangements must be in writing and agreed upon in accordance with the applicable award or agreement.
Alternative Public Holiday Payments
Certain awards allow for alternative payment options, such as:
- 25% loading on the base rate plus either:
- A paid day off
- An extra day of annual leave
If a paid day off is chosen, it must be taken:
- During the same week, or
- Within 28 days of the public holiday
Salaried employees who work on a public holiday must receive:
- Equivalent paid time off, or
- The time added to their annual leave balance
Do Employees Have to Work on Public Holidays?
Not necessarily. Employees can refuse to work on a public holiday if:
- The employer’s request is unreasonable, or
- They have reasonable personal grounds for refusing
What makes a request or refusal reasonable?
Factors considered include:
- The nature of the workplace and employee duties
- The employee’s personal circumstances (e.g. family responsibilities)
- Whether working on public holidays is part of the employee’s normal expectation
- Any applicable penalty rates or entitlements
- The type of employment (full-time, part-time, casual, shiftwork)
- The amount of notice given by both employer and employee
- Any other relevant circumstances
Annual Leave & Sick Leave:
- If a public holiday falls during a period of paid leave, the employee must still be paid for the public holiday.
- These hours are not deducted from leave balances.
- If an employee calls in sick on a public holiday, they aren’t normally rostered, they won’t be paid for that day.
- Usual evidence requirements apply to sick leave taken around a public holiday.
Unpaid Leave:
Employees on unpaid leave (e.g. parental, carers, or community service leave) generally do not receive payment for public holidays unless:
- The employee would otherwise have worked, and
- Their award or agreement provides for it
Minimum Hours on Public Holidays
When an employee works on a public holiday, they must be paid for a minimum of:
- 4 hours (for full-time and part-time employees)
- 2 hours (for casuals)
Note: this may vary based on the applicable award — always double-check.
Working in a Different State on a Public Holiday
Employees are entitled to the public holidays observed in the state they are based, not necessarily the one they are working in on that day.
When Do Public Holidays Occur?
Public holidays vary by state and territory and can change each year.
Make sure to review the official 2025 public holiday calendar for your state and start planning ahead. HERE
Stay Up to Date with Pay Guide Changes
Refer to Fair Work for the most recent pay guides under your relevant award. Rates often change as of 1 July each year.
For our existing clients, we can email these to you as required.
Need help navigating public holiday pay and rostering?
Reach out to ensure your business stays compliant — and stress-free — all year round.
Call our team at Numbers Australia on 1300 043 327 or contact HERE
