Casual loading is an additional payment made on top of a casual employee's fixed hourly wage. It is usually 25% of the base rate, but it can vary depending on the award or enterprise agreement
. Casual loading is paid to compensate casual employees for the fact that they do not receive certain entitlements provided to full-time and part-time employees, such as annual leave, personal leave, payment for public holidays, and redundancy pay
. To calculate the casual loading rate, you must multiply the hourly rate of a permanent employee by the percentage of casual loading as stated in the relevant modern award or enterprise agreement
. For example, if a permanent employee's hourly rate is $20 and the casual loading rate is 25%, the casual employee's hourly rate would be $25 ($20 + $5). Employers are required to pay casual loading to casual employees, as it is a legal requirement
. As of 1 July 2022, the minimum rate of pay for casual employees (including casual loading) is $26.73 per hour
. The casual loading amount is determined by the relevant award or registered agreement covering the employee, or for award-free or agreement-free employees, the rate of casual loading derives from the National Minimum Wage Order
