Public Holiday Pay: Saturday vs. Monday (And What It Costs You)

Disclaimer: Shiftly provides calculation tools based on Australian Modern Awards to help you estimate shift costs. We are not a payroll provider or legal adviser, and we don't guarantee the accuracy of these calculations. Always verify rates with Fair Work or your accountant.

Public holidays in Australia are a logistical headache. When a holiday hits a weekend, the confusion around "observed" days and penalty rates can blow out your labor costs if you aren’t prepared.

Here is the no-nonsense breakdown of how public holiday pay works for your crew.

1. The Saturday vs. Monday Trap

If a public holiday (like Australia Day or Anzac Day) falls on a Saturday, but a "substituted" public holiday is declared for the following Monday, which day is the public holiday?

• The General Rule: For most awards, if a substituted day is declared, the Monday is the public holiday. This means the Saturday is treated as a normal Saturday (with standard Saturday penalty rates), and the Monday attracts the full public holiday penalty rates.

• The "Additional Day" Exception: In some states or for specific holidays (like Christmas), both the weekend day and the Monday might be declared public holidays. In this case, you could be paying public holiday rates on both days if you've rostered staff.

2. Casual Employees: Do They Get Paid If They Don't Work?

Simple answer: No. Casual employees are only paid for the hours they actually work. If a casual isn't rostered on the public holiday, they don't get a cent.

However, if they do work:

• They are entitled to the public holiday penalty rate.
• In the Hospitality Industry (General) Award [MA000009] and the Restaurant Industry Award [MA0000119], this is typically 250% of their base rate.

3. Permanent Staff: The "Ordinary Hours" Rule

If a public holiday falls on a day a full-time or part-time employee would normally work, and you tell them to stay home, you must pay them their base rate for those hours.

If they do work the holiday, you're usually looking at 225%–250% of their base rate, depending on the award.

4. How to Stop the Cost Blowout

Public holidays are the most expensive days of the year to run a business. If you aren't calculating your "cost to serve" before you publish the roster, you’re flying blind.

Shiftly's calculation tools help you estimate these costs:

• Award Rate Calculators: Shiftly has built-in tools for the Restaurant, Hospitality, Retail, and Clerks awards to help you estimate what a shift will cost before you commit.

• Estimated Penalty Rates: Our engine calculates expected penalty rates based on award data so you can see the impact of that Monday public holiday on your bottom line.

• Xero Integration: Once the holiday is over, approved timesheets flow directly to Xero, assisting your payroll process without the manual data entry.

The Bottom Line

Don't guess when it comes to public holidays. Use Shiftly’s free rostering and award estimation tools to see your shift costs upfront.

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