Overtime Pay in Australia: Complete Guide to Rates, Laws & Your Rights (2026)
Everything you need to know about overtime pay in Australia in 2026 — how it's calculated, what rates apply under different awards, state-by-state rules.
Overtime Pay in Australia: Complete Guide to Rates, Laws & Your Rights (2026)
If you have ever stayed back late, worked a weekend, or powered through a public holiday and wondered whether you were being paid correctly — this guide is for you.
Overtime pay in Australia is one of the most misunderstood areas of workplace law. Unlike the United States, where a simple federal rule says "anything over 40 hours a week is overtime at 1.5x," Australia's system is considerably more nuanced. What you are entitled to depends on your industry, your specific award or enterprise agreement, when the extra hours are worked, and your employment type.
Getting it wrong costs money — sometimes a lot of it. In 2024 and 2025, some of Australia's biggest underpayment scandals involved exactly these kinds of overtime and penalty rate errors, with large employers owing workers millions in back pay.
This guide covers the full picture: the legal framework, how rates are calculated, worked examples for real scenarios, what applies state by state, and how to check whether you are being paid correctly.
The Legal Framework: What Governs Overtime in Australia
The Fair Work Act 2009
Overtime in Australia is primarily governed by the Fair Work Act 2009 and administered by the Fair Work Ombudsman. The Act establishes the National Employment Standards (NES), which set a baseline of 38 ordinary hours per week for full-time employees — with provision for "reasonable additional hours" on top.
Critically, the Act does not set a single overtime rate. Instead, it delegates overtime rules to Modern Awards and Enterprise Agreements, which vary by industry and occupation.
A New Protection: The Fair Work Amendment (Protecting Penalty and Overtime Rates) Act 2025
A significant legislative change took effect from 30 August 2025. This amendment to the Fair Work Act now requires the Fair Work Commission to ensure that penalty rates and overtime rates under modern awards cannot be reduced. These rates are now protected as fundamental entitlements for approximately 2.6 million Australian workers covered by modern awards.
In practice, this means the Fair Work Commission cannot lower overtime rates as part of award reviews — a protection that did not previously exist in this form.
Modern Awards
There are currently 121 modern awards in Australia's national workplace relations system, each covering a specific industry or occupation. Every award contains its own schedule of overtime rates, overtime triggers, and penalty rates for different times of day and week.
Common awards you may be covered by include:
- General Retail Industry Award 2020 (MA000004) — retail workers
- Hospitality Industry (General) Award 2020 (MA000009) — hotels, restaurants, cafes
- Clerks — Private Sector Award 2020 — office and admin workers
- Building and Construction General On-site Award 2020 — construction workers
- Health Professionals and Support Services Award 2020 — healthcare workers
- Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS) — care workers
If you are unsure which award covers you, the Fair Work Ombudsman's Pay and Conditions Tool at fairwork.gov.au lets you identify your award by industry and job type.
Enterprise Agreements
Some workplaces operate under an Enterprise Agreement (EA) — a negotiated agreement between an employer and a group of employees, approved by the Fair Work Commission. EAs can offer different terms to awards, but must pass the Better Off Overall Test (BOOT), meaning employees must be better off overall under the agreement than they would be under the applicable award.
Award-Free Employees
Some employees — particularly those earning above the high income threshold (currently $175,000 per year) — may not be covered by a modern award. For these employees, overtime entitlements are determined by their employment contract. If the contract is silent on overtime, the NES "reasonable additional hours" framework applies, but there is no prescribed rate.
Overtime vs. Penalty Rates: What Is the Difference?
These two terms are often confused, and for good reason — in some situations, they overlap.
Overtime refers to pay for hours worked beyond an employee's ordinary hours, as defined by their award or agreement. For most full-time employees, this means hours beyond 38 per week, or beyond a daily limit specified in their award (often 7.6 or 10 hours per day).
Penalty rates are higher pay rates that apply when working at particular times — evenings, nights, weekends, or public holidays — regardless of how many total hours you have worked that week. A part-time employee who works only 20 hours per week can still earn penalty rates for Sunday work, even though they are nowhere near overtime territory.
In some situations, both can apply simultaneously. For example, a full-time employee who works more than 38 hours in a week and those extra hours fall on a Sunday may be entitled to both overtime rates and Sunday penalty rates — whichever is higher, or in some awards, both stacked together. Always check your specific award.
When Does Overtime Start?
There is no single trigger that applies to all Australian employees. Different awards use different mechanisms:
Weekly overtime — The most common trigger. Overtime applies after an employee works more than their ordinary weekly hours. For full-time employees this is typically 38 hours. For part-time employees, it is usually the hours agreed in their contract.
Daily overtime — Some awards also specify a daily cap. The Hospitality Industry Award, for example, triggers overtime after 10 hours in a single day (excluding unpaid breaks), regardless of total weekly hours. An employee who works 11 hours in one day has earned 1 hour of overtime pay, even if their weekly total is still under 38 hours.
Span of hours — Many awards define a "span of hours" within which ordinary rates apply — for example, 7am to 6pm Monday to Saturday. Work performed outside these hours attracts penalty rates even if total hours have not exceeded the weekly threshold.
Some awards use all three mechanisms in combination. Getting this wrong is where most underpayment issues originate.
Overtime Rates: The Numbers
Standard Overtime Rates Under Most Awards
Most awards pay overtime at 150% (time and a half) for the first 2–3 overtime hours, then 200% (double time) thereafter.
In practical terms:
| Overtime Scenario | Rate | Multiplier |
|---|---|---|
| First 2–3 hours of overtime (weekday) | Time and a half | 1.5x |
| Beyond 2–3 hours of overtime (weekday) | Double time | 2.0x |
| Saturday (many awards) | Time and a half | 1.5x |
| Sunday (many awards) | Double time | 2.0x |
| Public holidays (most awards) | Double time and a half | 2.5x |
These are the most common rates across the 121 modern awards, but your specific award may differ. Always verify at fairwork.gov.au.
Overtime Rates by Key Industry Award (2025–26)
General Retail Industry Award (MA000004)
Under the General Retail Industry Award, overtime rates for the first 3 hours are at one rate, with higher rates thereafter. Saturday attracts 150%, Sunday 150% for permanents, and public holidays 250%.
| Overtime Period | Rate |
|---|---|
| First 3 hours (weekday) | 150% |
| After 3 hours (weekday) | 200% |
| Saturday | 150% |
| Sunday (permanent) | 150% |
| Public holiday | 250% |
Hospitality Industry (General) Award (MA000009)
The Hospitality Industry (General) Award provides Saturday at 125%, Sunday at 150%, and public holidays at 225%, with evening work after 7pm at 115%.
| Overtime Period | Rate |
|---|---|
| Weekday overtime (first hours) | 150% |
| Weekday overtime (additional) | 200% |
| Saturday | 125% |
| Sunday | 150% |
| Public holiday | 225% |
| Evening work after 7pm | 115% |
Building and Construction General On-site Award
Construction workers generally receive:
| Overtime Period | Rate |
|---|---|
| First 2 hours weekday overtime | 150% |
| Beyond 2 hours weekday overtime | 200% |
| Saturday | 150% |
| Sunday | 200% |
| Public holiday | 250% |
Nurses Award / Health Professionals Award
Healthcare workers typically receive higher public holiday loading to reflect the nature of the role:
| Overtime Period | Rate |
|---|---|
| Weekday overtime | 150% then 200% |
| Saturday | 150% |
| Sunday | 200% |
| Public holiday | 250% |
How to Calculate Overtime Pay: Step-by-Step
The formula is straightforward once you know your rate:
Overtime Pay = Hourly Rate × Overtime Multiplier × Overtime Hours
Use our overtime pay calculator to calculate your exact entitlements instantly.
Here are worked examples across different scenarios.
Example 1 — Standard Full-Time Employee (Office / Clerks Award)
Sarah is a full-time admin worker earning $32.00 per hour under the Clerks — Private Sector Award. Her ordinary hours are 38 hours per week. In one week she works 43 hours — 5 hours beyond her ordinary hours.
Her award provides: first 2 hours of overtime at 150%, then 200% after that.
| Hours | Rate | Calculation | Pay |
|---|---|---|---|
| First 2 overtime hours | 150% | 2 × $32.00 × 1.5 | $96.00 |
| Next 3 overtime hours | 200% | 3 × $32.00 × 2.0 | $192.00 |
| Total overtime pay | $288.00 |
Sarah's normal pay for 38 hours: $1,216.00 Total weekly earnings: $1,504.00
Example 2 — Hospitality Worker (Weekend Shift)
Marco is a full-time food and beverage attendant earning $26.55 per hour (Level 1 under the Hospitality Award). He works a normal 38-hour week, plus an additional 4-hour Sunday shift.
Under the Hospitality Award, Sunday work attracts 150%. Since he has already worked his 38 ordinary hours, the Sunday hours are also overtime.
| Period | Rate Applied | Calculation | Pay |
|---|---|---|---|
| Sunday 4 hours (overtime + Sunday rate) | Higher of 150% or overtime | 4 × $26.55 × 2.0 | $212.40 |
His award applies the higher of the overtime rate or penalty rate when both are triggered simultaneously. The total Sunday shift earns Marco $212.40 rather than the $106.20 he would earn at his ordinary rate.
Example 3 — Retail Casual (Public Holiday)
Priya is a casual retail worker earning a base rate of $25.50 per hour (including the 25% casual loading). She works a 5-hour shift on a public holiday.
Under the General Retail Industry Award, public holiday work attracts 250% for casual employees.
| Period | Rate | Calculation | Pay |
|---|---|---|---|
| 5 hours on public holiday | 250% | 5 × $25.50 × 2.5 | $318.75 |
Compared to a standard weekday shift, Priya earns an additional $191.25 for working those same 5 hours on a public holiday.
Example 4 — Part-Time Employee Exceeding Contracted Hours
James is a part-time retail worker with contracted hours of 20 hours per week at $28.00 per hour. In a particular week, he works 26 hours because a colleague is sick.
For part-time employees, overtime is generally triggered when they work beyond their contracted hours — not the full-time 38-hour threshold. James has worked 6 additional hours beyond his contract.
| Hours | Rate | Calculation | Pay |
|---|---|---|---|
| 20 contracted hours | Ordinary rate | 20 × $28.00 | $560.00 |
| First 3 overtime hours | 150% | 3 × $28.00 × 1.5 | $126.00 |
| Next 3 overtime hours | 200% | 3 × $28.00 × 2.0 | $168.00 |
| Total weekly earnings | $854.00 |
Example 5 — Construction Worker (Long Day)
Dave is a full-time construction worker on $40.00 per hour under the Building and Construction General On-site Award. He works a 12-hour day (including a 30-minute unpaid break, so 11.5 working hours).
The Building Award has a daily overtime trigger. Ordinary hours in a day are typically 7.6 hours. Dave has worked 3.9 hours of overtime in this single day.
| Period | Rate | Calculation | Pay |
|---|---|---|---|
| Ordinary 7.6 hours | 100% | 7.6 × $40.00 | $304.00 |
| First 2 overtime hours | 150% | 2 × $40.00 × 1.5 | $120.00 |
| Remaining 1.9 overtime hours | 200% | 1.9 × $40.00 × 2.0 | $152.00 |
| Total day's earnings | $576.00 |
Without overtime, Dave would have earned $460 for the day. The correct calculation adds $116 extra.
State-by-State: Is Overtime Different Across Australia?
This is one of the most common questions Australians ask — and the answer is nuanced.
The National System (NSW, VIC, QLD, SA, TAS, ACT, NT)
Overtime in New South Wales, Victoria, Queensland and other states sits under the same national Fair Work framework. What varies by state are public holiday dates and some long service leave rules, which can influence when penalty or overtime provisions are triggered in a given week.
In practical terms: if you work in NSW, Victoria, Queensland, South Australia, Tasmania, the ACT or the Northern Territory and you are employed in the private sector, your overtime entitlements come from your modern award or enterprise agreement under the Fair Work Act. The rates do not change state to state — your award does.
What does vary by state:
- Public holidays — Each state has different gazetted public holidays. A public holiday in Victoria (e.g. AFL Grand Final Friday) is not necessarily a public holiday in Queensland. Since public holidays attract 250% or higher overtime rates under most awards, which public holidays fall in your state has a direct dollar impact on your entitlements.
- Long service leave — Each state has different long service leave laws, which can affect total compensation calculations.
- State public sector employees — Most state government employees are covered by state industrial systems, not the Fair Work Act, and their overtime rules may differ.
Western Australia: The Exception
The majority of Australian states, with the exception of Western Australia, handed over their industrial relations powers to the Commonwealth Government.
Western Australia is the only state with a significant parallel industrial relations system. The State laws apply to most employers not covered by the national Fair Work system such as sole traders, unincorporated entities including partnerships and some trusts, plus incorporated associations which are not trading.
In practice, most larger private sector employers in WA are in the national system and follow Fair Work rules. However, if you work for a sole trader, unincorporated partnership, or certain associations in WA, your overtime entitlements may be governed by the Western Australian Industrial Relations Commission and WA state awards rather than Fair Work modern awards.
WA state awards generally provide similar overtime rates (time and a half, then double time), but the specific thresholds and triggers can differ from national awards. If you are unsure which system applies to your WA employer, the Wageline service (wageline.wa.gov.au) is the WA equivalent of the Fair Work Ombudsman.
Summary by state:
| State/Territory | System | Key Note |
|---|---|---|
| NSW | National (Fair Work) | State public holidays vary |
| VIC | National (Fair Work) | Includes AFL Grand Final Friday |
| QLD | National (Fair Work) | State public holidays vary |
| SA | National (Fair Work) | Adelaide Cup affects entitlements |
| TAS | National (Fair Work) | State public holidays vary |
| ACT | National (Fair Work) | Canberra Day etc. |
| NT | National (Fair Work) | Picnic Day etc. |
| WA (private sector) | Mostly national | Some sole traders / partnerships under WA state system |
| WA state system | WA Industrial Relations | Wageline.wa.gov.au governs |
Time Off in Lieu (TOIL): An Alternative to Overtime Pay
Instead of receiving additional pay for overtime hours, some employees receive Time Off in Lieu (TOIL) — paid time off at a later date.
TOIL is not automatically available. It requires:
- Your award or enterprise agreement must specifically allow TOIL arrangements
- A written agreement between you and your employer (usually made before the overtime is worked)
- The time off must be taken at the overtime rate — meaning if you worked 2 hours of overtime at time and a half, you accrue 3 hours of TOIL (not 2)
Awards generally fall into one of the following TOIL approaches: Ordinary rate TOIL (one hour of TOIL for each overtime hour worked), Overtime rate TOIL (TOIL accrued at the overtime rate — time and a half for the first two hours, then double time), or awards that do not specify a method, leaving it for the employer and employee to agree.
TOIL does not replace your annual leave entitlement — it is tracked separately. If you leave the job with unused TOIL, your employer must pay out the value of those hours.
Salary Employees: Do You Still Get Overtime?
A common misconception is that salaried employees are not entitled to overtime. This is not always true.
Permanent salaried workers often don't receive explicit overtime pay since they aren't paid an hourly wage. Their total compensation package typically factors in potential overtime work, and this arrangement should be clearly detailed in your employment agreement. Even with salaried positions, if you're award covered, your employer must ensure your annual salary equals or exceeds what you would have earned under the relevant award, including overtime entitlements. If your calculated award entitlements exceed your annual salary, your employer may need to provide additional payment.
In short: if your award covers you, your salary must absorb all entitlements — including overtime — or your employer needs to top you up. This is a common source of underpayment for salaried workers in retail management, hospitality management, and similar roles.
Casual Employees and Overtime
Casual employees are entitled to overtime when they exceed the relevant thresholds. Overtime rates are calculated on top of the casual loading. For example, if the base rate is $25 plus 25% casual loading ($31.25), overtime at 150% would be $46.88 per hour.
The 25% casual loading does not replace your overtime entitlement — it is added on top of your base rate before the overtime multiplier is applied.
Can Your Employer Force You to Work Overtime?
The Fair Work Act gives employees in Australia the right to refuse to work overtime. According to section 62 of the act, employers must not require or request employees to work more than the regular or ordinary hours in a week unless the extra hours are reasonable.
What makes overtime "reasonable" is assessed case by case and includes factors such as:
- Risk to your health and safety (including fatigue)
- Your personal circumstances, including caring responsibilities
- The amount of notice given by your employer
- Whether additional pay or compensation is provided
- The nature of your role and industry
- The usual pattern of work in your industry
You cannot be dismissed or disadvantaged for refusing genuinely unreasonable overtime.
Is Overtime Taxed Differently?
No. Overtime pay is taxed as ordinary income in Australia — it is added to your regular pay for the pay period and taxed at your marginal tax rate through the PAYG withholding system. There is no separate "overtime tax rate."
However, because overtime often pushes your total earnings for that pay period higher, it may be withheld at a higher marginal rate for that fortnight. This does not mean you are being taxed more overall — it evens out across the financial year when you lodge your tax return.
Superannuation on Overtime
Superannuation is generally payable on overtime as part of your ordinary time earnings (OTE) in Australia. However, the specific treatment depends on the nature of the overtime:
- Overtime worked on a regular and systematic basis — generally counts as OTE, and super is payable
- Overtime that is genuinely irregular and infrequent — may not be treated as OTE, and super may not be payable
The ATO's guidance on this is nuanced and depends on your specific circumstances. If you regularly work significant overtime, it is worth confirming with your payroll team or a financial adviser whether super is being calculated correctly.
How to Check If You Are Being Underpaid
Overtime underpayment is one of the most common workplace law issues in Australia. Here is how to check:
Step 1 — Identify your award. Use the Fair Work Ombudsman's Pay and Conditions Tool at fairwork.gov.au. Search by your industry and job type.
Step 2 — Find your classification. Most awards have multiple levels. Find the classification that matches your skills and responsibilities.
Step 3 — Calculate what you should have been paid. Use our overtime pay calculator to plug in your hours, rate, and overtime type.
Step 4 — Compare to what you received. Check your payslips against the calculation. Employers are required to keep time and wage records for seven years, and you are entitled to request these.
Step 5 — If there is a discrepancy. Raise it with your employer first in writing. If unresolved, contact the Fair Work Ombudsman on 13 13 94 or lodge a complaint at fairwork.gov.au. The FWO has investigative powers and can recover unpaid wages on your behalf.
Frequently Asked Questions
What is the overtime rate in Australia?
The most common rate under most modern awards is time and a half (150%) for the first 2–3 hours of overtime, then double time (200%) after that. Public holiday overtime is typically double time and a half (250%). Your exact rate depends on your modern award or enterprise agreement.
When does overtime start in Australia?
For most full-time employees, overtime starts after 38 ordinary hours per week. However, many awards also have daily overtime triggers — for example, after 10 hours in a single day under the Hospitality Award. Part-time employees generally trigger overtime when they exceed their contracted hours.
Do casual workers get overtime in Australia?
Yes. Casual employees are entitled to overtime under their modern award once they exceed the relevant daily or weekly thresholds. The overtime rate is calculated on their loaded rate (base rate plus 25% casual loading).
Is overtime pay different in Victoria vs New South Wales?
No — both states are in the national Fair Work system, and overtime rates are set by modern awards, not by the state. What varies is which public holidays are gazetted in each state, since public holiday work attracts higher rates.
Can my employer make me take time off instead of overtime pay?
Only if your modern award or enterprise agreement permits Time Off in Lieu (TOIL) and you have a written agreement in place. Your employer cannot unilaterally substitute TOIL for your cash entitlement without these conditions being met.
Is overtime taxed more in Australia?
Overtime is not taxed at a separate, higher rate. It is added to your regular income and taxed at your marginal tax rate. Higher total earnings in a given pay period may result in higher PAYG withholding for that period, but this is reconciled in your annual tax return.
Do I get superannuation on overtime?
Generally yes, if the overtime is worked on a regular and systematic basis. Genuinely irregular overtime may not attract super contributions. The ATO's OTE guidelines provide the specific rules.
What if my employer refuses to pay overtime?
Start by raising the issue in writing with your employer. If unresolved, contact the Fair Work Ombudsman on 13 13 94. Underpayment of award entitlements is a legal breach, and the FWO can investigate and recover wages on your behalf.
What is the overtime threshold for salaried workers?
Salaried employees covered by a modern award must receive a salary that meets or exceeds all award entitlements, including overtime. If the total value of your overtime and other award entitlements exceeds your annual salary, your employer must pay the difference.
Where can I find my specific overtime rates?
The Fair Work Ombudsman's Pay and Conditions Tool at fairwork.gov.au is the authoritative source. You can also use our overtime pay calculator to calculate your entitlements based on your hourly rate and hours worked.
Final Word
Overtime pay in Australia sits at the intersection of federal law, 121 different modern awards, enterprise agreements, employment types, and state-specific public holiday calendars. That complexity is why underpayment of overtime is so common — and why understanding your specific entitlements matters.
The key takeaways:
- Overtime rules are set by your specific modern award or enterprise agreement, not a single national rule
- For most employees, overtime starts at 150% (time and a half) for the first 2–3 hours, then 200% (double time)
- Public holidays attract up to 250% under most awards
- Casual employees do get overtime — calculated on their loaded rate
- Western Australia is the only state with a parallel industrial relations system for some employers
- Salaried employees on awards must still have their total compensation tested against all award entitlements including overtime
- As of 30 August 2025, penalty and overtime rates in modern awards are legally protected from being reduced
If you want to know exactly what your overtime hours should be worth, plug your numbers into our overtime pay calculator — it handles time and a half, double time, and public holiday rates so you can see your entitlements clearly.
This article is general information only and does not constitute legal or financial advice. Overtime entitlements depend on your specific award, enterprise agreement, and employment circumstances. For authoritative guidance, contact the Fair Work Ombudsman at fairwork.gov.au or on 13 13 94.