Is it cheaper to hire casual or part-time employees?

It depends on hours and usage pattern. Casuals cost more per hour (25% loading) but employers save on paid leave. Part-time employees cost less per hour but accrue annual leave, personal leave, and other entitlements. Over a full year, part-time is usually cheaper for regular, predictable shifts.

What is the 25% casual loading?

Casual loading is an extra 25% added on top of the base hourly rate paid to casual employees. It compensates them for not receiving paid annual leave, personal leave, notice of termination, and redundancy pay that permanent employees receive.

Can I convert a casual employee to part-time?

Yes, but the mechanism changed. The old rule requiring employers to offer conversion was abolished. Under the employee choice pathway, YOU give your employer written notice that you want to change to permanent, once you have been employed at least 6 months — or 12 months if your employer is a small business with fewer than 15 employees — and you believe you no longer meet the casual definition. The employer must consult you and respond in writing within 21 days, and can only refuse on the grounds set out in the Act. Use our Casual Conversion Checker to see if you qualify.

Casual vs Part-Time Comparison

Enter your award, classification, and weekly hours to compare the total annual cost of casual versus part-time employment.

Last verified: 2 August 2026Jump to calculator ↓

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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