Public holidays can be tricky for payroll, especially if you're juggling multiple roles in your business. With Easter and ANZAC Day coming up, now is the perfect time to brush up on what you need to do to get it right.
If you're ever unsure, you're not alone—many business owners and administrators find public holiday pay confusing. This guide will help you navigate the key rules so you can confidently process payroll without stress.
Who Gets Paid for a Public Holiday?
If a public holiday falls on a day your employee would usually work, they are entitled to be paid for the day—even if they don’t work.
✅ If they don’t work: They receive their normal daily pay or "relevant daily pay" (which includes bonuses and allowances).
✅ If they do work: They must be paid at least time-and-a-half for the hours they work plus a paid day off later (an alternative holiday) if the day is normally a working day for them.
Example:
Sarah usually works Mondays. Easter Monday is a public holiday.
If she takes the day off, she still gets paid her normal wage.
If she works, she must be paid at least 1.5x her normal rate, and she gets another paid day off to use later.
What If a Public Holiday Falls on a Non-Workday?
If the public holiday falls on a day your employee does not normally work, they do not get paid for it. However, if they do work, they still get time-and-a-half, but they do not get an alternative holiday.
Transferring a Public Holiday
Some businesses prefer to shift a public holiday to another date—this is called a transferred public holiday. This must be agreed upon in writing between you and your employee. The new date then becomes their public holiday for payroll purposes.
When Public Holidays Fall During Leave
Holidays can be extra confusing when employees are already on leave. Here’s what you need to know:
Annual Leave: If an employee is on annual leave and a public holiday falls on a day they would normally work, the day does not count as annual leave. Instead, they get paid for the public holiday.
Sick or Bereavement Leave: If an employee is on sick leave or bereavement leave on a public holiday, they get paid for the public holiday instead.
Plan Ahead for Smooth Payroll Processing
With three public holidays close together in April (Good Friday, Easter Monday, and ANZAC Day), now is the time to plan ahead.
Check who is working and who isn’t.
Ensure your payroll system calculates time-and-a-half and alternative holidays correctly.
Communicate with employees about how public holiday pay works.
Mistakes with public holiday pay can be costly, but with a little preparation, you can avoid payroll headaches and keep your team happy. If you need help, I’m always here to make payroll easier for you!
Final thoughts…
As you can see, public holiday payroll can be tricky, but understanding the basics makes all the difference. I hope this guide has helped clarify things and given you more confidence when processing holiday pay. If you have any questions or need further support, feel free to reach out.
