What are penalty rates?
Penalty rates are higher pay rates for working outside normal hours — evenings, weekends, and public holidays.
Penalty rates are higher rates of pay for working at times that are outside normal hours — like evenings, weekends, and public holidays. They're set by your Modern Award or enterprise agreement.
For example, a retail worker might get time-and-a-quarter on Saturday, time-and-a-half on Sunday, and double time on a public holiday. The exact rates depend on your award and the day or time.
Key facts
- •Set by individual Modern Awards — rates vary by industry
- •Common rates: 125% Saturday, 150% Sunday, 200-250% public holidays
- •Apply to both full-time, part-time, and casual employees
- •Casual employees get penalty rates on top of their casual loading
- •Some awards have lower weekend rates for certain industries (e.g. retail, hospitality)
Try the calculator
Penalty Rates CalculatorFrequently asked questions
Do casuals get penalty rates as well as casual loading?
Yes. Casual loading and penalty rates are separate. A casual working on a Sunday gets the Sunday penalty rate applied to their base rate plus casual loading.
Can my employer avoid paying penalty rates?
No, if your award includes them. However, an enterprise agreement can trade off penalty rates for other benefits, as long as employees are better off overall.
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.