Casual loading explained: what the 25% means
Why casuals get an extra 25% an hour, what it's meant to cover, and how to work out your real hourly rate.
Last updated 3 November 2026
If you’re a casual, your hourly rate is higher than a permanent worker doing the same job — usually by 25%. That extra is casual loading, and it’s not a bonus: it’s there to make up for entitlements casuals don’t get. Here’s what it covers and how to work out your real rate.
What casual loading is for
Permanent employees get paid leave and more job security. Casuals trade that away in exchange for a higher hourly rate. The loading compensates for not receiving:
- Paid annual leave
- Paid personal / carer’s (sick) leave
- Notice of termination and redundancy pay
- Guaranteed, regular hours
So the 25% isn’t extra money for the same deal — it’s payment instead of those benefits.
The standard rate: 25%
The 25% casual loading is set by the National Minimum Wage order and is the standard across most modern awards. But the precise figure is defined in the award, enterprise agreement or contract that covers your role, so it can occasionally differ. If you’re award-covered, the loading applies to your award rate; if you’re award-free, it applies to the national minimum wage.
How to work out your casual rate
Add the loading to the base rate — for 25%, multiply by 1.25:
- $24.00 base × 1.25 = $30.00 casual
- $28.00 base × 1.25 = $35.00 casual
- $32.00 base × 1.25 = $40.00 casual
To go the other way — stripping the loading out of a casual rate to find the base — divide by 1.25. A $35.00 casual rate is $35.00 ÷ 1.25 = $28.00 base.
Watch out for “double dipping”
Because the loading already pays you instead of leave, a casual generally can’t also claim paid annual leave on top. If you later convert to a permanent role, the 25% loading stops and the paid-leave entitlements begin instead.
See what it means annually
A higher hourly rate adds up differently over a year depending on your hours. Convert your casual rate into weekly or annual pay with our hourly to annual salary calculator, then check the take-home after tax with the salary calculator.
Rates are set by Fair Work and change each year (usually 1 July) — confirm your award’s current base rate and loading on the Fair Work Ombudsman pay guide.
Work out your own numbers
Frequently asked questions
What is casual loading?
Casual loading is an extra percentage added to a casual employee's base hourly rate to make up for the benefits permanent staff get but casuals don't — mainly paid annual leave and paid sick leave. The standard loading is 25%.
Is casual loading always 25%?
25% is the standard rate under the National Minimum Wage and most modern awards, but the exact figure comes from your award, enterprise agreement or contract, so it can differ. Always check the award that covers your job on the Fair Work pay guide.
What does casual loading compensate for?
It compensates casuals for not receiving paid leave entitlements — paid annual leave, paid personal/carer's (sick) leave, notice of termination and redundancy pay. The higher hourly rate is the trade-off for that lack of guaranteed hours and leave.
How do I calculate my casual hourly rate?
Multiply the base hourly rate by 1.25 for a 25% loading. If the base rate is $28.00, the casual rate is $28.00 × 1.25 = $35.00 an hour. For a different loading, use 1 plus the percentage (e.g. 1.25 for 25%).