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What is Casual loading?

Casual loading is the additional percentage paid to casual employees in place of paid leave and notice entitlements. Under the SCHADS Award it is 25 per cent of the minimum hourly rate. It applies to the base rate, and the interaction between casual loading and penalty rates is set by the award rather than chosen by the employer.

Getting the compounding right matters. Whether a penalty applies to the base rate or to the loaded rate changes the cost of every weekend shift, and a payroll system configured on the wrong assumption underpays or overpays consistently rather than occasionally.

Casual conversion rights also apply: a regular, systematic casual may be entitled to become permanent, which changes the cost base for the roster they were filling.

Related terms

SCHADS AwardThe SCHADS Award is the modern award covering most Australian disability and community services employees. It sets minimum pay rates by classification level, and the rules for penalties, overtime, broken shifts, sleepovers, on-call, travel reimbursement and minimum engagement periods. Compliance is a legal obligation, not a payroll preference.Contractor vs employeeA contractor runs their own business and invoices for services; an employee works in the employer’s business under its direction. The distinction is decided on the substance of the relationship, not the label in the agreement. Misclassifying an employee as a contractor exposes a provider to back-pay, superannuation and penalty liabilities.Minimum engagementMinimum engagement is the shortest period an employee must be paid for when called to work, regardless of how long the shift actually runs. Under the SCHADS Award, disability support workers generally have a two-hour minimum for part-time and casual engagements, with some exceptions for particular arrangements.

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Rostery handles this in practice

SCHADS interpretation, NDIS price-guide validation, claiming and the evidence an audit asks for — built for Australian providers.

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