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Casual Pay Premium a Myth

The ACTU has released a new paper which argues that most casual workers get nowhere near the 25% loading due to them, instead receiving a “modest wage premium” of 4% to 5% more than permanent employees.

Contrasting this with the common 25% award-prescribed loading for casuals in return for not receiving benefits such as annual leave and sick leave, the union paper asserts that for some occupations – including sports and fitness workers, clerks, and packers and product assemblers – the “premium” was in fact negative.

ACTU secretary Sally McManus said workers who were engaged as “genuine casuals” should receive a premium for the lack of paid leave and job security.

“Casual work should be exactly that – work where shifts can vary and there is no legitimate expectation of ongoing work,” she said.

“While some people do choose casual work because they need flexibility, many would prefer the paid leave and security that comes with permanent work.

“Big business has been rorting our system, using loopholes and underhanded arrangements to pay some casuals even less than permanent workers doing the same job.

“This is another reason for the gender pay gap, as women are more likely to be working as casuals.”

Find the full report here