Public Holiday Pay on an Australian Payslip (Christmas, Boxing Day & New Year 2026–27)

Your payroll software spits out payslips on the 24th of December and everything looks fine — until an employee calls asking why their Christmas Day pay "looks different." Most of the time it's not wrong, it's just labelled poorly. Here's exactly what public holiday pay should look like on an Australian payslip for the 2026–27 summer period, and what the Fair Work Act actually requires.

Which Public Holidays Apply in 2026–27? (National vs State)

Three public holidays sit in the December–January window for every Australian state and territory. In 2026, Christmas falls on a Friday and Boxing Day on a Saturday — which means a substitution day of Monday 28 December 2026 applies for Boxing Day in states where employees don't ordinarily work weekends. It's worth setting your payroll calendar now so that Monday doesn't get processed as a plain workday.

One rule that catches multi-state employers: the public holiday that applies is the one where the work is performed, not where the business is headquartered. A Sydney business with a worker in Adelaide still needs to handle the SA part-day rules.

What You're Entitled To: Working vs Not Working a Public Holiday

There are two completely different entitlements at play, and getting them confused is where most payroll errors happen.

Not working the holiday: Under Fair Work Act s116, full-time and part-time employees are entitled to be absent on a public holiday and paid their ordinary rate for the hours they would have normally worked. No penalty rate, no extra calculation — just their usual pay as if the day happened.

Working the holiday: This is where penalty rates kick in. Under most Modern Awards, employees who work on a public holiday are entitled to 225% of their ordinary hourly rate — that's double time and a half. The penalty rate lines on your payslip work the same way as overtime, except the multiplier is higher and the trigger is the date, not the hours. The General Retail Industry Award and the Hospitality Industry (General) Award both sit at 225% — check your specific Award on the Fair Work website if you're outside these industries, as some differ.

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Under the Fair Work Act's National Employment Standards, an employee may reasonably refuse a request to work a public holiday. If the request is unreasonable — or the refusal is reasonable — the employer cannot require attendance.

Casuals: The Fair Work Act does not give casual employees a paid public holiday entitlement — the casual loading is generally considered to compensate for this. But many Modern Awards do include provisions for casuals, so check the Award before assuming. For a full breakdown of how casual employees and public holidays interact under different Awards, that guide covers it in detail.

How Public Holiday Pay Should Appear on the Payslip

The payslip requirements under the Fair Work Act say the payslip must show each separate rate of pay — which means public holiday pay cannot be buried inside a generic "ordinary hours" line. It needs its own line.

Key Takeaway
Two compliant formats exist for a worked public holiday. Either a single line at 225%, or a base-rate line plus a separate penalty top-up line. Both pass — as long as the total gross is correct and the rate is visible.

Description	Hours	Rate	Amount
SCENARIO A — Employee did NOT work the public holiday
Public Holiday — Ordinary Pay	7.6	$30.00	$228.00
SCENARIO B — Employee worked the public holiday (225%, combined line)
Public Holiday Worked (225%)	7.6	$67.50	$513.00
SCENARIO B — Employee worked the public holiday (split lines)
Public Holiday — Base Pay	7.6	$30.00	$228.00
Public Holiday Penalty (125%)	7.6	$37.50	$285.00

YTD column: Public holiday earnings — whether at ordinary rate or penalty — go into YTD gross just like any other hours. PAYG withholding and super are both calculated on the full gross including the penalty component. The YTD column on an Australian payslip matters here because December's penalty pay can cause an apparent "spike" in gross that surprises employees — especially if they worked Christmas, Boxing Day and the substitution Monday.

SA part-day holidays: Only the hours falling within the declared window (from 7pm on 24 Dec and 31 Dec) attract the holiday penalty rate. Hours worked before 7pm on those days are ordinary hours at the standard rate. Your payslip should reflect this with a split: ordinary hours line for before 7pm, and a public holiday penalty line for after 7pm.

Did You Know?
Take Jamie, a duty manager at a South Australian pub (a composite of the scenarios we see regularly). On New Year's Eve, she works 5pm–1am. Only the hours from 7pm onward — six hours — attract the public holiday penalty rate. The 5–7pm block is ordinary hours, labelled separately on the payslip. Two lines, one shift.

Quick Payslip Checklist for the December–January Period

1. 1
   Confirm which public holidays apply in your state. SA employers need to flag the part-day provisions for 24 and 31 December. Multi-state employers — apply the rules of the state where work is performed. Flag Monday 28 December as a substitution day for Boxing Day.
2. 2
   Check the relevant Modern Award for the correct penalty rate. Most sit at 225%, but not all. Retail and Hospitality are 225% — don't assume it applies to every Award without checking the Fair Work website.
3. 3
   Label each public holiday pay line clearly on the payslip. "Ordinary hours" is not acceptable for a holiday worked. Use "Public Holiday Worked (225%)" or equivalent so the rate is visible — this is a Fair Work payslip requirement.
4. 4
   Include public holiday earnings in YTD gross and super calculation. Both PAYG withholding and the super guarantee (12% from 1 July 2025) apply to the full gross including penalty rates. Don't exclude the loading from the super base.
5. 5
   For casuals — check your Award before assuming no entitlement. The Fair Work Act default is no paid public holiday for casuals, but many Awards carve out entitlements. A quick Award check now saves a correction notice in January.

The Bottom Line

Public holiday pay in Australia is governed by the Fair Work Act's National Employment Standards — not employer discretion. Full-time and part-time employees get paid for the day they don't work (s116, ordinary rate). If they do work, Modern Award penalty rates apply, and every rate must appear as a separate, clearly labelled line on the payslip. Pay records that misrepresent hours or rates are unlawful under the Fair Work Act.

Frequently Asked Questions

Do casual employees get paid for public holidays in Australia?

Generally no — the Fair Work Act doesn't extend the paid public holiday entitlement to casuals, and the casual loading is considered to compensate for this. However, some Modern Awards and enterprise agreements do include specific provisions for casuals on public holidays, so check your Award before assuming. If in doubt, the Fair Work Ombudsman's Award Finder is the authoritative source.

What is the public holiday penalty rate in Australia?

Most Modern Awards set it at 225% of the ordinary hourly rate — that's double time and a half. Some Awards differ: a small number provide double time (200%) plus an additional paid day off in lieu rather than a higher cash rate. Always confirm the rate in your specific Award rather than defaulting to the 225% figure.

What if an employee is rostered off on a public holiday?

A full-time or part-time employee who is rostered off on a day that falls on a public holiday is still entitled to be paid for that day at their ordinary rate under Fair Work Act s116. The holiday doesn't cancel their paid day — it replaces what would have been a normal rostered shift.

Does superannuation apply to public holiday penalty rates?

Yes. The super guarantee (12% from 1 July 2025) is calculated on ordinary time earnings, which includes public holiday pay — whether the employee worked the day or not, and whether penalty rates applied or not. The penalty component is part of gross earnings and is not excluded from the super base.

What happens if Christmas falls on a weekend?

When a public holiday falls on a Saturday or Sunday and an employee would not ordinarily work that day, most state and territory legislation provides for a substitution day — typically the following Monday (or Tuesday if Monday is also a public holiday). In 2026, Boxing Day falls on a Saturday, which triggers Monday 28 December as the substitution day in most jurisdictions. Employees who work the actual Saturday still attract the holiday penalty rate for that day; employees who work the Monday substitution day do too.

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