$40 Per Hour Casual Rate
Break down the 25% casual loading, compare against permanent employment, and see penalty rates.
Last verified: 1 July 2025Quick Answer
A casual rate of $40/hr means the base rate is $32.00/hr (before 25% loading). The casual loading adds $8.00/hr to compensate for no paid leave.
Casual Loading Breakdown
| Item | Amount |
|---|---|
| Base hourly rate (before loading) | $32.00 |
| 25% casual loading | + $8.00 |
| Casual loaded rate | $40.00 |
Reverse calculation: $40.00 / 1.25 = $32.00 base rate
Forward calculation: If the base rate is $40.00, the casual rate is $50.00
Casual vs Permanent Comparison
Assuming 38 hours/week and 52 weeks/year for casual:
| Item | Casual | Permanent |
|---|---|---|
| Hourly rate | $40.00 | $32.00 |
| Annual earnings (base) | $79,040.00 | $63,232.00 |
| Value of permanent entitlements | ||
| 4 weeks annual leave | N/A | $4,864.00 |
| 10 days sick leave | N/A | $2,432.00 |
| 10 public holidays | N/A | $2,432.00 |
| Total entitlements value | $0.00 | $9,728.00 |
| Total package value | $79,040.00 | $72,960.00 |
| Difference | Casual is worth $6,080.00 more/year | |
This comparison assumes 52 weeks of casual work. If you work fewer weeks as a casual, permanent becomes more favourable. Does not include notice periods, redundancy pay, or superannuation (both receive super).
Casual Penalty Rates at $40/hr
Casual penalty rates are calculated on the base rate (not the loaded rate). Exact rates vary by award. Common rates under the General Retail Industry Award:
| Shift Type | Rate | Hourly Pay |
|---|---|---|
| Weekday (standard casual) | Base + 25% | $40.00 |
| Saturday | Base + 50% | $48.00 |
| Sunday | Base + 75% | $56.00 |
| Public Holiday | Base + 175% | $88.00 |
Penalty rates vary by award. The rates shown are common under retail and hospitality awards. Check your specific Modern Award for exact rates.
Frequently Asked Questions
What is the base rate for a $40 casual rate?
A casual rate of $40/hr includes 25% casual loading. The underlying base rate is $32.00/hr. The loading component is $8.00/hr, which compensates for no paid leave entitlements.
Is $40 an hour good for casual work?
The national minimum wage is $24.10/hr (July 2025), and the minimum casual rate with 25% loading is $30.13/hr. At $40/hr casual, the equivalent permanent rate is $32.00/hr. Whether this is competitive depends on your industry, award, and experience level.
Am I better off casual or permanent at $40/hr?
At $40/hr casual working 52 weeks, you earn $79,040.00/year vs a permanent package worth $72,960.00 (including leave). Casual pays $6,080.00 more annually, but you have no paid leave, no notice period, and no redundancy pay.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.