Overtime pay in Australia is not set by a single national rate. It is set by your modern award or enterprise agreement, and while most awards follow a familiar pattern — time-and-a-half for the first few hours, then double time — the details vary enough to cost you real money if you assume the wrong pattern. This guide explains how overtime is calculated under Australian awards, what triggers it, and how to check your own pay.
To work out what your extra hours are worth at your rate, use the overtime calculator — but read this guide first, because the calculator is only right if you feed it your award’s actual rates.
When does overtime start?
Under the National Employment Standards, the maximum ordinary hours for a full-time employee are 38 hours per week, and an employer may request reasonable additional hours beyond that. An employee may refuse additional hours if the request is unreasonable, considering factors such as their personal circumstances, the needs of the workplace, notice given, and health and safety.
Most modern awards define overtime with two triggers, and either one can start the overtime clock:
- Weekly trigger: hours worked beyond 38 in a week (or beyond the award’s ordinary weekly hours, which differ in some industries).
- Daily trigger: hours worked beyond the ordinary hours for a day — commonly 7.6 hours, or the rostered shift length in your award.
- Spread-of-hours trigger: hours worked outside the award’s ordinary span of hours, for example before 6am or after 6pm in some awards, even if the total for the week is under 38.
Part-time employees can also earn overtime. If a part-timer works beyond their agreed or rostered hours, many awards treat the extra hours as overtime even if the weekly total is under 38 — though some awards pay ordinary rates up to 38 hours first. Check your award’s part-time clause; it is one of the most commonly misunderstood provisions.
The common overtime rate pattern
Most modern awards use a version of this structure, expressed as a percentage of your ordinary hourly rate:
| When the overtime is worked | Common rate |
|---|---|
| First 2 hours (some awards: first 3 hours) of overtime, Monday to Saturday | 150% — time and a half |
| After the first 2 hours (or 3) on a weekday or Saturday | 200% — double time |
| All overtime on a Sunday | 200% — double time |
| All overtime on a public holiday | 250% — double time and a half |
The “first 2 or first 3 hours” distinction is the single most important detail to get right, because it changes every overtime calculation. The General Retail Industry Award, for example, has historically used a first-3-hours structure in some of its overtime provisions, while many other awards use first-2-hours. Never assume — find your award’s overtime clause and read the exact threshold.
Some awards also apply different treatment for overtime that extends past midnight, or for overtime worked without the required break between shifts (which can attract a double-time rate until a break is taken). If you regularly work long or broken shifts, these clauses are worth reading in full.
Worked examples
Example 1 — weekday overtime, first-2-hours award. You earn an ordinary rate of $30 an hour and work 3 hours of overtime on a Wednesday. The first 2 hours pay time-and-a-half: 2 × $45 = $90. The third hour pays double time: 1 × $60 = $60. Total overtime pay for the 3 hours is $150, compared with $90 at ordinary rates.
Example 2 — a 45-hour week. You earn $30 an hour and work 45 hours in a week under a first-2-hours award. Ordinary pay is 38 × $30 = $1,140. Overtime is 7 hours: the first 2 at $45 ($90) and the remaining 5 at $60 ($300), for $390. Your total weekly pay is $1,530 — about 35% more than an ordinary week, for about 18% more hours.
Example 3 — Sunday overtime. You earn $30 an hour and work 4 hours on a Sunday as overtime. At double time throughout, that is 4 × $60 = $240, versus $120 at ordinary rates.
Example 4 — public holiday overtime. The same 4 hours on a public holiday at double time and a half pay 4 × $75 = $300. Public holiday overtime is where award differences are largest, with some awards paying 250% and others more, so this is the figure most worth verifying against your own award.
Overtime, penalty rates and casual loading — how they stack
Overtime, penalty rates and casual loading are three different things, and they interact in ways that trip people up:
- Penalty rates reward working unsociable hours — weekends, nights, public holidays — whether or not the hours are overtime. An ordinary Sunday shift attracts a penalty rate even though it is not overtime.
- Overtime rewards hours beyond ordinary hours, regardless of when they fall. A Wednesday evening shift that takes you past your daily ordinary hours can be overtime even though Wednesday is an ordinary day.
- Casual loading (usually 25%) compensates casuals for the absence of paid leave and other permanent entitlements.
When overtime and a penalty rate could both apply to the same hours, most awards pay only the higher of the two — not both stacked on top of each other. And for casuals, the position varies by award: some awards calculate overtime on the ordinary rate excluding the casual loading, while others calculate it on the loaded rate. A casual earning $33 an hour (a $26.40 base plus 25% loading, against the national minimum wage of $26.44 an hour from 1 July 2026) could therefore be paid overtime at very different rates depending on the award. If you are casual, this clause is the first one to check.
Time off in lieu (TOIL) instead of overtime pay
Under most modern awards, overtime must be paid at penalty rates unless you genuinely agree to take time off in lieu instead. Your employer cannot unilaterally direct you to take TOIL instead of overtime pay. If you do agree, the time off must be taken at the overtime rate: one hour of overtime at time-and-a-half entitles you to 1.5 hours off, and one hour at double time entitles you to 2 hours off. TOIL at straight time — one hour off for one hour worked — is non-compliant under most awards. Your agreement should be recorded in writing, and if you have not taken the TOIL within the period your award specifies, you can usually request payment instead.
How to check your award’s overtime rates
- Find your award. Use the Fair Work Ombudsman’s Award Finder, or check your employment contract or payslip — many name the award.
- Find the overtime clause. It usually sits near the hours-of-work and penalty-rate clauses. Note the daily and weekly triggers, the first-hours threshold (2 or 3), and the Sunday and public holiday rates.
- Check the pay guide. The Fair Work Ombudsman’s pay guides set out the current minimum hourly rates for each classification under each award, updated when award rates rise each July.
- Compare with your payslip. Multiply your ordinary rate by the award multipliers and check a recent overtime shift line by line. Underpayments most often come from the wrong threshold, the wrong trigger, or overtime calculated on the wrong base rate.
- Keep records. Employers must keep accurate time and wage records for 7 years. Keep your own copies of rosters and payslips too — they are your evidence if a discrepancy needs to be raised.
If your pay does not match your award, raise it with your employer in writing first, citing the clause. If it is not resolved, the Fair Work Ombudsman can investigate, and underpayment claims can be made for up to 6 years.
Frequently asked questions
What is the standard overtime rate in Australia?
There is no single national rate. Most modern awards pay time-and-a-half (150%) for the first 2 or 3 hours of overtime and double time (200%) after that, with double time on Sundays and double time and a half (250%) on public holidays. Your award decides the exact pattern.
Is overtime time-and-a-half or double time?
Usually both, in sequence: time-and-a-half for the first few hours of overtime, then double time for hours beyond that threshold. Some awards use a 2-hour threshold and others a 3-hour threshold.
When does overtime start in Australia?
Typically when you work beyond 38 ordinary hours in a week, beyond your daily ordinary hours, or outside your award’s spread of ordinary hours. Part-time employees may earn overtime beyond their agreed hours even under 38 hours a week, depending on the award.
Do casuals get overtime rates?
Yes, casuals can earn overtime, but the base rate used for the calculation varies by award — some use the ordinary rate excluding casual loading, others the loaded rate. Check your award’s casual overtime clause.
Can my employer give me time off instead of overtime pay?
Only if you genuinely agree. Under most awards, TOIL must be at the overtime rate (1.5 hours off per hour at time-and-a-half, 2 hours off per hour at double time), recorded in writing, and paid out if not taken within the award’s timeframe.
How do I check if my overtime pay is correct?
Find your award’s overtime clause, note its triggers and multipliers, and multiply your ordinary rate by those multipliers for a recent overtime shift. Compare the result with your payslip, and contact the Fair Work Ombudsman if it does not match.
The bottom line
Overtime under Australian awards usually means time-and-a-half for the first 2 or 3 hours and double time after that — but “usually” is not good enough when it is your pay. Find your award, confirm its threshold and its Sunday and public holiday rates, and check one real payslip against the maths. Then use the overtime calculator with your award’s actual rates to price every extra shift before you agree to work it.