Understanding overtime and penalty rates
When overtime kicks in, how penalty rates work, and how to check you're being paid correctly.
When does overtime apply?
Overtime generally applies when you work beyond your ordinary hours — typically more than 38 hours per week for full-time employees, or beyond your agreed hours for part-time. Your award may also specify daily overtime triggers (e.g., more than 8 hours in a day). Overtime is usually paid at 150% for the first 2-3 hours and 200% after that.
How penalty rates work
Penalty rates are higher pay rates for working at less desirable times — weekends, evenings, early mornings, and public holidays. They're set by your Modern Award as a multiplier of your base rate. For example, 150% on a Saturday means 1.5 times your base rate. Different awards have different penalty structures.
Common penalty rate structures
Hospitality/Restaurant: Saturday 125%, Sunday 150%, Public Holiday 225%, Evening 115%. Retail: Saturday 125%, Sunday 150%, Public Holiday 250%. Clerks: Saturday 150%, Sunday 200%, Public Holiday 250%. Building: Saturday 150-200%, Sunday 200%, Public Holiday 250%. Always check your specific award for exact rates.
Can I be asked to work unreasonable overtime?
Under the NES, an employer can request overtime, but an employee can refuse if it's unreasonable. Factors include: health and safety risks, personal circumstances, the notice given, the employee's role, and whether overtime is compensated at the correct rate. Full-time employees can be required to work reasonable additional hours.
Official resources
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FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is 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.
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Do You Get Super on Overtime in Australia? (The Answer Might Surprise You)Short answer: generally NO — super isn't paid on overtime hours. But many employers get it wrong both ways. Here's exactly what counts as OTE and how to check your super.
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