Australia Day is celebrated annually on 26 January. For employers, the question of when public holiday pay rates are applicable for full-time, part-time and casual employees depends on the nature of their work schedules and rules defined by the Fair Work Act 2009, modern awards and enterprise agreements.
Calculating public holiday rates
Public holiday rates, often referred to as penalty rates, are additional pay rates that apply when employees work on public holidays. These rates are determined by the specific award or enterprise agreement that covers an employee. The Fair Work Commission provides tools to help employers calculate these rates, which can vary significantly across different industries. It is essential for employers to consult the relevant award or enterprise agreement to determine the specific entitlements for their employees, ensuring compliance with legal requirements and fair compensation for work performed on public holidays.
When are Australia Day public holiday rates applicable?
If Australia Day falls on a weekday:
Employees who would normally work on Australia Day are entitled to public holiday rates, which typically means double time for the hours worked or another higher rate of pay as specified in their modern award or enterprise agreement.
If the employee is not required to work on Australia Day because their workplace is closed, they are usually paid their standard rate of pay for the holiday, with no extra pay.
If Australia Day falls on a Saturday or Sunday:
If Australia Day falls on a weekend with no substitute, and an employee is required to work on the actual day (e.g. Saturday, 26 January), public holiday pay rates are applicable for those hours worked.
In cases where Australia Day falls on a Saturday or Sunday, some states or territories, including Queensland, have a practice of observing the public holiday on the following Monday (a substitute public holiday). If the holiday is moved, employees who work on the substitute day will be entitled to public holiday pay rates.
What does this mean for Australia Day 2025?
In Queensland, the Australia Day public holiday falls on Monday 27 January to substitute for Australia Day being on a Sunday. This means any employees who work on Sunday 26 January are only entitled to the applicable Sunday penalty rates, not the public holiday rates. However, any employees who work on Monday 27 January will be entitled to the applicable public holiday rates.
Public holiday entitlements in practice
Employees who are normally scheduled to work on national public holidays – including Anzac Day, Good Friday, Easter Sunday, Christmas Day, Labour Day and Boxing Day – should receive the appropriate penalty rates for any work performed on the Australia Day public holiday. These rates are determined by the specific award or enterprise agreements that cover the employee. The national employment standards provide the framework for these entitlements.
For businesses that close during public holidays, if an employee is not required to attend work but would have worked if it had not been a public holiday, the employee is entitled to receive their standard rate of pay.
If an employee is not scheduled to work on a public holiday and the employee would not have worked if it was not a public holiday (for example, an employee who does not work Mondays), the employee is not entitled to receive any pay on the public holiday.
