In Australia, the standard working week is 38 ordinary hours under the Fair Work Act 2009. Overtime is defined as hours worked beyond 38 hours per week (or beyond agreed daily hours in your Award/Agreement). The standard overtime rate under most Modern Awards is 1.5× for the first 3 hours and 2× thereafter. Penalty rates apply for weekends, public holidays, and shift work.
Australia has some of the most detailed overtime and penalty rate rules in the world. Whether you're covered by a Modern Award, an Enterprise Agreement, or an employment contract, your entitlements can differ significantly. This guide covers the core rules under the Fair Work Act and the most common Modern Award provisions.
The Legal Framework
Australian overtime and penalty rates are governed by a layered system:
- Fair Work Act 2009 — The national employment law that sets minimum standards and defines "ordinary hours"
- Modern Awards — Industry-specific or occupation-specific awards that set overtime rates, penalty rates, and other conditions (there are 122 Modern Awards)
- Enterprise Agreements (EAs) — Collectively negotiated agreements between an employer and their workers; must be better off overall than the applicable Modern Award
- Employment contracts — Individual contracts that must meet or exceed the National Employment Standards (NES)
Which applies to you? Most employees are covered by a Modern Award or Enterprise Agreement. If you're unsure, use the Fair Work Award Finder to find your applicable Award.
Ordinary Hours and the 38-Hour Week
The maximum ordinary hours of work under the Fair Work Act is 38 hours per week for full-time employees. An employer may request "reasonable additional hours" beyond this, but the employee may refuse if the request is unreasonable.
Factors that determine whether additional hours are "reasonable" include:
- The employee's personal circumstances (family responsibilities)
- Needs of the workplace
- Whether additional pay or TOIL (time off in lieu) is provided
- Notice given and the usual pattern of work in the industry
- Health and safety implications
Standard Modern Award Overtime Rates
Under most Modern Awards (e.g., General Retail Industry Award, Clerks Private Sector Award, Manufacturing Award), the overtime penalty rates are:
| When Overtime Applies | Rate |
|---|---|
| First 3 hours of overtime on a weekday | 1.5× (time and a half) |
| After 3 hours of overtime on a weekday | 2× (double time) |
| Overtime on a Saturday (first 3 hrs) | 1.5× |
| Overtime on a Saturday (after 3 hrs) | 2× |
| All overtime on a Sunday | 2× |
| All overtime on a Public Holiday | 2.5× (or higher) |
Important: Rates vary by Award. Healthcare workers, hospitality workers, retail workers, and construction workers often have different rates. Always check your specific Modern Award or Enterprise Agreement.
Penalty Rates: Weekend and Public Holiday
Even when not in overtime, Australian workers are entitled to penalty rates for working at certain times. These are in addition to or instead of your ordinary hourly rate:
| Day / Time | Typical Penalty Rate (Modern Award) |
|---|---|
| Monday–Friday, ordinary hours | Ordinary rate (1×) |
| Saturday | 1.25× to 1.5× (varies by Award) |
| Sunday | 1.75× to 2× (varies by Award) |
| Public Holiday | 2.25× to 2.5× (varies by Award) |
| Night shift (e.g., midnight–6am) | 1.15× to 1.3× (varies by Award) |
Australia Overtime Calculator
Enter your shift start and end times — ClockCalc calculates total hours worked and overtime automatically. Use it to verify your payslip each week.
Calculate My Australian Overtime →How to Calculate Australian Overtime Pay
Total weekly pay: Total = (38 × Ordinary Rate) + OT Pay
Calculation Example
Ordinary rate: AUD $26/hr | Week total: 46 hours (8 hrs overtime)
Ordinary pay: 38 × $26 = $988.00
OT hours 1–3: 3 × $26 × 1.5 = $117.00
OT hours 4–8: 5 × $26 × 2.0 = $260.00
Without OT protection: 46 × $26 = $1,196 — penalty rates add $169.
Time Off in Lieu (TOIL)
Instead of receiving overtime pay, some employees (with agreement) may take Time Off in Lieu. Under the Fair Work Act:
- TOIL must be agreed in writing before the overtime is worked
- The time off must be equivalent to the overtime penalty — 1.5 hours off for each hour at 1.5× rate, 2 hours off for each hour at 2× rate
- TOIL that isn't taken within 3 months must be paid out at the overtime rate
- TOIL arrangements cannot reduce pay below the Modern Award rate
Casual and Part-Time Employees
Casual employees in Australia receive a casual loading (typically 25%) on top of the ordinary rate in lieu of leave entitlements. Overtime for casuals follows the same penalty rates once ordinary hours are exceeded.
Part-time employees can only work agreed hours without overtime applying — hours worked beyond the agreed part-time schedule may attract overtime rates depending on the Award.
Frequently Asked Questions
What is the standard overtime rate in Australia?
Under most Modern Awards, overtime is paid at 1.5× for the first 3 hours on a weekday and 2× for any hours beyond that. Sunday overtime is typically paid at 2× throughout. Public holiday rates are usually 2.25× to 2.5×.
How many hours per week before overtime in Australia?
Ordinary hours are capped at 38 per week under the Fair Work Act. Overtime begins after 38 ordinary hours per week (or after your agreed daily hours, whichever applies under your Award).
Do casual workers get overtime pay in Australia?
Yes. Casual employees receive the casual loading (25%) on their ordinary rate, and overtime penalty rates apply on top of that when they work beyond ordinary hours. The casual loading doesn't replace overtime entitlements.
What is the minimum wage in Australia in 2026?
The National Minimum Wage is reviewed annually by the Fair Work Commission. As of mid-2026, it is approximately AUD $24.10/hr ($916 per 38-hour week). Overtime is calculated as a multiple of this rate (or your higher Award rate).
Can my employer refuse to pay overtime in Australia?
If you're covered by a Modern Award or Enterprise Agreement that specifies overtime rates, your employer must pay them. Employers can only avoid overtime by having you take TOIL instead — and only with your written agreement before the overtime is worked.
Do salary employees get overtime in Australia?
Salaried employees covered by an Award are entitled to overtime if the Award applies to them — unless their salary covers all overtime via an "all-in" arrangement that makes them better off overall. Senior employees on individual contracts above the high income threshold (approximately $175,000) are generally Award-free.
Summary
Australia's overtime system is more complex than many countries — overtime rates, penalty rates, and TOIL rules all interact and vary by your Modern Award or Enterprise Agreement. The core numbers to remember: 38 ordinary hours/week, 1.5× for the first 3 OT hours, 2× beyond that, and elevated rates on weekends and public holidays.
Use ClockCalc to enter your exact shift start and end times, deduct breaks, and get an automatic total of ordinary and overtime hours each week — then cross-check against your payslip.
- Fair Work Ombudsman – Hours of Work & Overtime
- Fair Work Ombudsman – Maximum Weekly Hours & Overtime Rules
- Fair Work – Find Your Modern Award
- Fair Work Act 2009 (Cth) – Section 62 (Maximum weekly hours)