Ask any Australian worker whether casual or permanent pays more and you will get confident answers in both directions. Casual workers point to their higher hourly rate. Permanent workers point to their paid leave, job security and predictable income. Both are right — but they are measuring different things. The honest answer depends on whether you compare the hourly rate, the annual income, or the total value of the job.
The headline fact is simple: casual employees in Australia receive a casual loading of 25% on top of the base hourly rate, in lieu of paid leave entitlements. So a permanent employee on $30 an hour and a casual doing the same job should earn $37.50 an hour. Over a full-time year of 38 hours a week, that is $59,280 permanent versus $74,100 casual — a $14,820 gap. But once you account for paid leave, unpaid gaps between shifts, and the value of security, the gap narrows sharply. This guide compares both options properly, so you can judge which one actually pays more for you. Compare your own rates with our free casual loading calculator.
Casual vs permanent: the quick comparison
| Permanent (full-time/part-time) | Casual | |
|---|---|---|
| Hourly rate (base $30 example) | $30.00 | $37.50 (base + 25% loading) |
| Annual pay (38 hrs/week, 52 weeks) | $59,280 | $74,100 |
| Paid annual leave | 4 weeks per year | None — loading compensates |
| Paid sick leave | 10 days per year | None — loading compensates |
| Paid public holidays | Yes, if ordinarily worked | No (unless penalty rates apply for working them) |
| Notice of termination | Yes, per award/agreement | Generally no notice required |
| Redundancy pay | Yes, if eligible | No |
| Hours guarantee | Set contracted hours | No guaranteed hours |
| Superannuation guarantee | 12% on ordinary time earnings | 12% on ordinary time earnings |
| Long service leave | Yes, per state rules | Yes, in most states (service-based) |
Why casual loading is 25%
Casual loading exists because casual employees miss out on the paid leave entitlements that permanent employees receive: four weeks of annual leave, ten days of personal (sick) leave, and paid public holidays. The 25% figure is the standard loading under most modern awards, and it is meant to compensate for those missing entitlements. Some awards set different loadings, and enterprise agreements can vary, but 25% is the benchmark — and it is calculated on the base rate, so penalty rates for nights, weekends and public holidays are generally calculated on the loaded rate as well, which is why casual weekend work can pay very well indeed.
It is worth noting that from 26 August 2024, the Fair Work Act introduced a formal pathway for casual employees to convert to permanent employment after six months (twelve months for small businesses), with employers also required to offer conversion in some circumstances. If you have been casual for a while and want permanency, that pathway is worth knowing about — and from 26 February 2025, casual employees also gained access to the “employee choice” conversion process.
Does casual actually pay more? The annual leave maths
Here is where the comparison gets interesting. A permanent employee on $30 an hour receives $59,280 for 52 weeks of the year — but four of those weeks are paid leave, so they are actually paid for 48 weeks of work. Their effective rate per week actually worked is $59,280 divided by 48, or about $1,235 a week. A casual on $37.50 an hour who works all 52 weeks earns $74,100 — clearly more. But a casual who takes four unpaid weeks off (the same holiday as their permanent colleague) earns $68,400 — still more, but the gap has shrunk from $14,820 to $9,120.
Now add sick days and public holidays. A permanent employee is paid for roughly ten sick days and around ten public holidays a year without working. If a casual takes the same days off unpaid, they lose about $1,425 for sick days and $1,425 for public holidays at $37.50 an hour (based on 7.6-hour days). The gap narrows further to around $6,270 — and that is before accounting for weeks when casual shifts are simply not offered, which is the real income risk of casual work. In a quiet month, a casual worker’s hours can fall sharply while a permanent worker’s pay does not move.
| Base rate | Permanent hourly | Casual hourly (+25%) | Permanent annual (38 hrs) | Casual annual (38 hrs, 52 wks) |
|---|---|---|---|---|
| $30 | $30.00 | $37.50 | $59,280 | $74,100 |
| $35 | $35.00 | $43.75 | $69,160 | $86,450 |
| $40 | $40.00 | $50.00 | $79,040 | $98,800 |
Beyond the hourly rate: what permanent work is worth
- Income stability: Permanent pay does not fluctuate with rosters. For mortgage applications, landlords and lenders treat permanent income as far more reliable — casual income often needs a longer history to be assessed the same way.
- Paid leave as real money: Four weeks of annual leave plus ten sick days is worth about $7,100 a year at a $30 base rate — money a casual worker must self-fund from their loading if they take the same time off.
- Notice and redundancy: Permanent employees receive notice periods and, if eligible, redundancy pay. Casual employment can end with a roster change, which is a financial risk that no loading fully prices.
- Career progression: Permanent roles more often come with training, promotion pathways and professional development that raise your base rate over time.
- Superannuation: Both casual and permanent employees receive 12% SG on ordinary time earnings, so there is no super disadvantage to casual work — but casual workers with irregular hours can end up with lower total contributions simply because they earn less in quiet periods.
When casual pays more — and when it does not
Casual work genuinely pays more when you work consistently, close to full-time hours, all year round, and you do not need much time off. Students, second-job holders and people who value flexibility often come out ahead, especially in industries with strong penalty rates — hospitality, healthcare and retail weekend work can push casual rates well above $50 an hour. Casual also wins when you can pick up extra shifts at penalty rates that a salaried permanent worker would never be paid for.
Permanent work wins when your hours would otherwise be irregular, when you value paid time off, when you are planning a mortgage or major loan, or when job security matters more than the hourly premium. It also wins over a career: the compounding effect of promotions, training and redundancy protection usually outweighs a 25% loading within a few years. The worst casual outcome is also the most common one — being hired as a “casual” but working regular, predictable hours for years, which means you carry all the insecurity of casual work while your employer avoids the leave bill. If that is your situation, the casual conversion pathway is worth exploring.
Tax differences between casual and permanent
There is no separate tax system for casual workers — the same 2025–26 resident rates apply, and the same 2% Medicare levy. The practical difference is cash flow: casual workers with variable hours can find their PAYG withholding fluctuates, and if you hold two casual jobs, you should only claim the tax-free threshold from one employer, or you risk a tax bill at return time. On the other hand, casual workers can sometimes manage their total income more precisely — for example, keeping annual income under a HECS repayment threshold or a family assistance threshold by controlling hours, which permanent workers cannot do.
Frequently asked questions
How much is casual loading in Australia?
The standard casual loading is 25% on top of the base hourly rate under most modern awards, paid in lieu of paid annual leave, sick leave and other permanent entitlements.
Does casual pay more than permanent?
Per hour, yes — by 25%. Per year, it depends: a casual working full-time hours all year earns more, but once unpaid leave, sick days, public holidays and quiet periods are factored in, the advantage shrinks considerably.
Do casual workers get superannuation?
Yes. Employers must pay 12% superannuation guarantee on ordinary time earnings for casual employees just as for permanent employees.
Can a casual employee become permanent?
Yes. Since August 2024, casual employees have a statutory pathway to request conversion to permanent employment after six months (twelve months for small business employers), and employers must offer conversion in some circumstances.
Do casual workers get paid public holidays?
Not generally — casuals are not paid for public holidays they do not work. If they do work a public holiday, penalty rates usually apply, often calculated on the loaded casual rate.
Which is better for getting a home loan?
Permanent employment is generally viewed more favourably by lenders because the income is stable and verifiable. Casual workers can still borrow, but lenders usually want a longer history of consistent casual income.
The bottom line
Casual work pays 25% more per hour, and for consistent full-time hours that translates into a genuinely higher annual income — $74,100 versus $59,280 on a $30 base rate. But permanent work buys you paid leave, notice, redundancy protection, stable hours and borrowing power that the loading only partly replaces. The right choice depends on your hours, your need for time off, and your financial goals — not just the hourly rate. Work out both sides properly with the casual loading calculator before you choose.