The casual loading rate is usually 25% of the minimum hourly rate, and most hosts stop there. A labour hire pay rate is not simply the fulltime rate times 1.25, though, because each award decides how the loading applies on weekends, shifts and overtime. On a $20.00 fulltime rate, the same Saturday hour pays $35.00 under one award and $37.50 under another.
This guide uses three awards that come up often in warehouse, food and distribution work: the Storage Services and Wholesale Award, the Food, Beverage and Tobacco Manufacturing Award and the Road Transport and Distribution Award. All dollar figures are illustrations on a round $20.00 fulltime hourly rate, and the percentages come from each award and Fair Work's pay guides dated 1 July 2026. For the legal test of who counts as a casual, see our guide to the casual employee definition.
What the casual loading is for
A casual employee has no guaranteed ongoing work and does not receive paid annual or personal leave, so the loading pays for that. The Fair Work Ombudsman's guide to casual employment says casuals are paid extra to compensate for not receiving the same entitlements as full-time and part-time employees. The loading is part of the pay rate on the rate card, not a surcharge a provider adds, and a quote that lists a separate loading line is showing the pay rate in two parts.
The loading is a percentage of the minimum hourly rate, so a grade or level that is higher pays a higher dollar loading. For a Storeworker grade 1 on commencement under the Storage Services and Wholesale Award, the fulltime rate of $27.08 plus a $6.77 loading gives the $33.85 casual rate from 1 July 2026.
Method one: a flat add-on
The Storage Services and Wholesale Award pays a casual the minimum hourly rate plus a loading of 25% of it for each ordinary hour (clause 11.2). For penalty and overtime hours the loading is added once to the fulltime percentage. The note under clause 21.1(d) says the casual overtime rates, 175% for the first two hours and 225% after, were calculated by adding the 25% loading to the fulltime overtime rates of 150% and 200%. Saturday becomes 175%, Sunday 225% and a public holiday 275%. Our guide to storage award pay rates gives the 2026 dollar rates.
Method two: a loading built into the base
The Food, Beverage and Tobacco Manufacturing Award adds the loading to the ordinary rate to form a casual ordinary hourly rate, then calculates penalties on that. Clause 10.4 says a reference to a percentage of the ordinary hourly rate means the casual ordinary hourly rate for a casual. Saturday at 150% is therefore 150% of 125%, which is 187.5% of the fulltime rate. Fair Work's pay guide shows it: a Level 1 casual is paid $32.18 on a weekday and $48.27 on Saturday, and $48.27 divided by the $25.74 fulltime rate is 1.875. See our guide to the food manufacturing award for the shift rules.
Method three: no loading in overtime, plus 10%
The Road Transport and Distribution Award keeps the 25% on ordinary, weekend, public holiday and shift hours, but clause 11.4 removes it in overtime. A casual instead receives 10% of the minimum hourly rate for each overtime hour in addition to the overtime rate. That makes time and a half 160% of the fulltime rate and double time 210%. Our guide to the road transport award covers the two classification scales.
The same hour under each method
Take a round $20.00 fulltime hourly rate. This is an illustration, not a classification from any award:
- Ordinary hour: $25.00 under all three methods
- Saturday ordinary hour: $35.00 flat (175%), $37.50 scaled (187.5%), $35.00 for Road Transport (175%)
- Sunday ordinary hour: $45.00 flat (225%), $50.00 scaled (250%), $45.00 for Road Transport (225%)
- Overtime, first block: $35.00 flat for the first 2 hours (175%), $37.50 scaled for the first 3 hours (187.5%), $32.00 for Road Transport for the first 2 hours (160%)
- Overtime, later hours: $45.00 flat after 2 hours (225%), $50.00 scaled after 3 hours (250%), $42.00 for Road Transport after 2 hours (210%)
The Road Transport overtime lines are the lowest because a casual gets 10% of the minimum rate in overtime instead of 25%. The scaled method is the highest on every weekend and overtime line. None of the three is a rule of thumb, which is why a quote that simply multiplies by 1.25 will not match the pay guide.
What the loading does to super and the rest of the rate
The ATO's list of ordinary time earnings includes casual loading, so super is payable on the loading as well as the base. On the $25.00 ordinary hour above, the 12% super is $3.00 and $0.60 of it sits on the $5.00 loading. Payroll tax and WorkCover are also charged on the loaded pay, which is why the loading flows through every line of a rate card. Our guide to labour cost per hour shows how those lines stack.
A transparent rate card therefore shows the fulltime rate, the casual loading and the resulting pay rate on separate lines for each column, so a host can check the loading against the award instead of taking the total on trust.
How to check a loading on a quote
- Ask which award or agreement applies and which clause sets the loading.
- Check a weekend line against the pay guide for that award, not against 1.25 times the weekday rate.
- On the Road Transport and Distribution Award, check that overtime lines use 160% and 210% rather than a flat loading.
- Ask for the pay guide date, because rates and some clauses change each July.
Related Resources
- Fair Work guide to casual employment
- ATO qualifying earnings and ordinary time earnings
- Storage Services and Wholesale Award pay rates
- Food, Beverage and Tobacco Manufacturing Award rates
- Road Transport and Distribution Award pay rates
- casual employee definition for regular casuals
- rostering casuals and part-timers by award
Common Questions About the Casual Loading Rate
1. What is the casual loading rate in Australia?
It is generally an extra 25% of the minimum hourly rate, according to the Fair Work Ombudsman. The exact figure and the way it applies come from the award, enterprise agreement or contract that covers the casual.
2. Is casual loading paid on overtime?
It depends on the award. The Storage Services and Wholesale Award builds the loading into casual overtime rates of 175% and 225%. The Road Transport and Distribution Award does not pay the 25% loading in overtime and pays 10% of the minimum hourly rate per overtime hour instead.
3. Does a casual loading count for super?
Yes. The ATO lists casual loading as ordinary time earnings, so superannuation is payable on it.
4. Why does a casual Saturday rate differ between awards?
Awards apply the loading in different ways. A flat add-on gives 175% of the fulltime rate for Saturday, while a loading built into the base gives 187.5%. Always read the pay guide for the award that applies.
5. Is the casual loading a margin the provider adds?
No. It is part of the worker's pay rate under the award and sits above the fulltime rate on a rate card. The provider's own fee is a separate line.
Read the Award Before You Multiply by 1.25
The loading is 25% in all three awards, but the dollars it produces on a Saturday, a Sunday or an overtime hour are not the same. Ask for the fulltime rate, the loading and the pay rate on separate lines, and check the weekend and overtime columns against the pay guide. Chandler Personnel provides Melbourne labour hire and permanent recruitment, and you can send your award and roster details through the request staff form.
