Do Salaried Employees Get Overtime in Australia? The Award Tests

It depends on whether an award covers you. A salary doesn't change that. If an award covers your job, its minimums still apply, including overtime and penalty rates. Your salary is only lawful if, across the year, it's at least what the award would have paid for the hours you actually worked. Contract wording like "the salary compensates for all hours worked" doesn't override the award.

Your situation	Overtime position
Award-covered, award has an annualised wage clause (e.g. Clerks)	Salary can absorb overtime up to stated "outer limits". Hours beyond them are paid separately, and there's an annual reconciliation
Award-covered, no annualised clause	Salary must at least cover the award entitlements for the hours worked, pay period by pay period
Professional Employees Award	Paid for hours over 38 a week unless your salary is 25% or more above the award minimum
Award-free, or above the high income threshold with a guarantee	No award overtime. The NES limit on unreasonable additional hours still applies (s 62)

Many awards let employers pay an annualised wage instead of separate overtime, penalties and allowances. The Clerks—Private Sector Award (MA000002) clause 18 is typical:

• The employer must tell you in writing the outer limit of penalty-rate hours and overtime hours the salary covers per pay period or roster cycle (cl 18.1(b)(iv)).
• Hours beyond either outer limit aren't covered by the salary and must be paid separately under the award (cl 18.1(c)).
• Every 12 months, and when employment ends, the employer must reconcile what the award would have paid against the salary, and pay any shortfall within 14 days (cl 18.2(b)).
• The employer must keep records of start and finish times and unpaid breaks, signed or acknowledged by you each pay period (cl 18.2(c)).

The Hospitality and Restaurant awards, among others, have similar clauses. If you've never seen an outer-limits letter or a reconciliation, ask for them. Run your own numbers with the annualised salary check and reconciliation tool.

The Professional Employees Award 2020 (MA000065) covers professionals such as engineers, IT and telecommunications professionals, scientists in some settings, quality auditors and medical research employees. Its rules:

• Ordinary hours are 38 a week (cl 13.1). Additional hours must be reasonable (cl 18.1).
• Full-timers are paid the minimum hourly rate for hours over 38 a week, or over the agreed average (cl 18.2(a)). That's on top of the salary, at the minimum hourly rate, not time and a half. Time off instead can be agreed in writing (cl 18.3).
• Work at the employer's direction before 6 am or after 10 pm (Monday to Saturday), on Sundays or on public holidays attracts the penalty rates in cl 18.4. For full-timers that's 125% (early/late) and 150% (Sunday and public holidays).
• The employer must keep records of these hours (cl 18.5).
• None of this applies if your contract salary is 25% or more above the award's minimum annual wage for your level (cl 18.6).

Level (cl 14.1, from 1 July 2026)	Minimum annual wage	25% threshold
Level 1 graduate (3-year degree, pay point 1.1)	$66,825	$83,531
Level 2 experienced professional	$78,836	$98,545

So a Level 2 engineer on $90,000 is under the threshold. If they're directed to work extra hours, those hours have to be recorded and paid. Source: MA000065 on the Fair Work Ombudsman award library, checked 9 October 2026.

Every national system employee, including award-free and high-income staff, can refuse to work additional hours beyond 38 a week (plus reasonable additional hours) if the extra hours are unreasonable (Fair Work Act s 62). Whether they're reasonable depends on factors including your health and safety, family responsibilities, notice, the pattern of hours in your industry and whether your pay reflects extra hours. A Federal Court case about salaried supermarket managers shows how rostered hours on a salary are tested. See our case summary and the reasonable overtime test.

What to do: keep a record of your start and finish times for a few months, check your award and level, and run the reconciliation. If there's a shortfall, raise it in writing with the overtime pay enquiry letter.