Published: February 2026
Public holidays are one of the most common sources of payroll errors in Australian businesses. Every state and territory has different public holidays, different penalty rate structures, and different substitution rules for when a holiday falls on a weekend. Getting penalty rates wrong on a single public holiday can result in underpayment claims, back-pay orders, and Fair Work Ombudsman enforcement action.
In 2026, the interaction between public holidays and the new Payday Super rules starting 1 July adds another layer of complexity. Employers running payroll on or around public holidays need to ensure both penalty rates and superannuation contributions are calculated and paid correctly within the new seven business day window.
This article provides the complete list of Australian public holidays for 2026 and into 2027, explains the payroll rules for permanent and casual employees, and highlights the most common mistakes that lead to underpayment claims.
Australia has eight national public holidays that apply in every state and territory. The 2026 dates are:
In addition to the national holidays, each state has its own public holidays:
The October cluster is particularly important for multi-state businesses. Labour Day in NSW, SA, and ACT falls on the same date as the King's Birthday in QLD, creating significant payroll complexity for businesses with employees across these jurisdictions.
Public holiday entitlements are governed by the National Employment Standards (NES) under the Fair Work Act 2009, with specific penalty rates set by the applicable Modern Award or enterprise agreement.
Permanent employees who would ordinarily work on a day that falls on a public holiday are entitled to a paid day off at their base rate for their ordinary hours. They do not need to use annual leave.
If a permanent employee is required to work on a public holiday, they are entitled to penalty rates as specified by their award. Common penalty rates include:
Employees can reasonably refuse a request to work on a public holiday under the Fair Work Act. What constitutes a reasonable refusal depends on the nature of the work, the employee's personal circumstances, and whether adequate notice was given.
If a public holiday falls during a period of annual leave, it must be treated as a public holiday and not counted as annual leave. This is a frequently overlooked rule that can result in underpayment claims.
Casual employees are not entitled to payment for public holidays they do not work. However, if a casual employee works on a public holiday, they must be paid the correct penalty rate under their award.
The interaction between casual loading and penalty rates on public holidays is the single most common source of public holiday underpayment. The correct calculation method depends on the specific award, and employers must check the applicable clause carefully.
Under many Modern Awards (including the General Retail Industry Award), the calculation works as follows:
However, other awards calculate the penalty on the loaded rate. For example, under some hospitality awards:
The critical point: You must check your specific award to determine whether the penalty is calculated on the base rate or the loaded rate. Getting this wrong in either direction creates compliance risk: either underpaying (Fair Work exposure) or overpaying (unnecessary cost).
Many awards stipulate a minimum shift payment for employees who work on a public holiday, typically three or four hours even if the employee works less. This means an employee called in for a two-hour shift on a public holiday must be paid for three or four hours at the full penalty rate, depending on their award.
The Fair Work Act allows employers and employees to agree in writing to substitute a public holiday for another day. The substituted day is then treated as the public holiday for all purposes including penalty rates. The substitution must not result in the employee being worse off overall under the NES.
When a public holiday falls on a weekend, state law and individual awards determine whether it is observed on the nearest weekday. The rules vary by state and by award, so employers must check both the state legislation and the specific award that applies to each employee.
The Fair Work Ombudsman actively investigates public holiday underpayments. The most frequent errors include:
March to April and October are the two peak public holiday periods for payroll complexity. Easter alone can involve four consecutive public holiday days in some states, each with different penalty rate rules. The October cluster brings Labour Day, the King's Birthday in Queensland, and various state-specific holidays within a single month.
Christmas and New Year shutdowns create additional complexity. If your business shuts down over the holiday period, employees may need to use annual leave for the non-public-holiday days. However, you cannot force employees to take annual leave on actual public holidays.
From 1 July 2026, Payday Super adds another consideration. Public holidays that fall near pay days may affect the seven business day window for superannuation payments. Employers should ensure their payroll systems account for public holidays when calculating super payment deadlines.
No. Casual employees are only entitled to public holiday penalty rates if they actually work on the public holiday. They do not receive payment for public holidays they do not work. However, a casual employee can reasonably refuse a request to work on a public holiday.
The method depends on your specific Modern Award. Some awards calculate the penalty on the base rate and add casual loading separately. Others calculate the penalty on the loaded rate (base plus 25% casual loading). You must check the public holiday clause in your specific award to determine the correct method.
The public holiday is treated as a public holiday, not annual leave. The employee's annual leave balance is not reduced for that day. They are entitled to be paid their base rate for the public holiday as if they were absent from work on a public holiday, and the annual leave day is effectively returned to their balance.
You can request employees to work on public holidays, but they can reasonably refuse. Whether a refusal is reasonable depends on the nature of the work, the employee's personal circumstances, whether the employee is full-time, part-time, or casual, and the amount of notice given. Penalty rates must be paid for any hours worked.
Yes, from 1 July 2026. The seven business day window for Payday Super excludes weekends and public holidays. If a pay day falls just before a public holiday period, the number of business days available to process and submit super contributions is reduced. Ensure your payroll system accounts for this when scheduling super payments.
Easter Sunday entitlements are award-specific and are not observed as a public holiday in all states. Some states (including ACT, NSW, and QLD) observe Easter Sunday as a public holiday, while others do not. You must check both your state legislation and your applicable Modern Award.
Disclaimer: Public holiday dates, penalty rates, and award provisions are subject to change. State-specific holidays may be amended by government proclamation. Always verify penalty rates against the applicable Modern Award or enterprise agreement for your employees. This article is general information only and does not constitute employment or legal advice.
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