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Calculate overtime pay, penalty rates and casual loading — plus the real after-tax value of your overtime, including whether it pushes you into a higher tax bracket.
Updated: 6 August 2026 · Reviewed by Mohsin Iqbal · 14 min read
Updated monthly to reflect Fair Work and ATO changes.
Estimates only — rates vary by Modern Award and Enterprise Agreement. Always verify your exact entitlement with the Fair Work Ombudsman's award finder.
⏱️ Last reviewed: 6 August 2026 · Written and reviewed by Mohsin Iqbal under our editorial policy and calculation methodology. Overtime and penalty rates vary by Modern Award — always confirm your exact entitlement with the Fair Work Ombudsman.
📖 Approx. 14 min read⏱️ Fair Work award rates · 2026–27 tax🔄 Updated 6 August 2026
Overtime entitlements come from your Modern Award or Enterprise Agreement, not directly from the National Employment Standards.
Common rates are time and a half (150%) for the first hours of overtime, then double time (200%) — but this varies significantly by award and industry.
Overtime is taxed at your normal marginal rate — there's no special "overtime tax rate" — but a big week can genuinely push you into a higher bracket.
Casual employees typically receive a 25% casual loading in place of paid leave entitlements, which interacts with penalty rates differently depending on the award.
This calculator now shows the real after-tax value of your overtime, not just the gross figure — including whether it changes your marginal tax rate.
Quick Answer
Overtime pay in Australia is typically calculated as your base hourly rate multiplied by a penalty rate — commonly 150% (time and a half) for the first 2–3 hours of weekday overtime, then 200% (double time) beyond that, with different rates again for Saturday, Sunday and public holiday work. The exact rate depends on your Modern Award or Enterprise Agreement. On a $32.50/hour base rate working 3 hours of weekday overtime, that's about $162.50 in overtime pay before tax — enter your own figures into the calculator above for an exact result, including the after-tax value.
What Is Overtime Pay?
Overtime is work performed beyond your ordinary hours — commonly beyond 38 hours a week or a set number of hours in a day, though this varies by award. Overtime entitlements are set by each employee's Modern Award or Enterprise Agreement, not by the National Employment Standards (NES) directly. Most awards require a higher rate for overtime hours, recognising the additional burden of working beyond agreed ordinary hours.
Overtime vs Penalty Rates — What's the Difference?
These terms are often used interchangeably but technically mean different things. Overtime specifically refers to hours worked beyond your ordinary hours for the day or week. Penalty rates refer to higher rates paid for working at particular times — evenings, weekends, and public holidays — regardless of whether those hours are within or beyond your ordinary hours. It's entirely possible to work a Saturday shift within your normal weekly hours and still receive a penalty rate for it, without that shift counting as "overtime" in the strict sense.
Time and a Half, Double Time — Rate Reference Table
Time Period
Typical Rate
Example: $30/hr Base
Weekday overtime (first 2hrs)
150%
$45.00/hr
Weekday overtime (after 2hrs)
200%
$60.00/hr
Saturday (ordinary hours)
150%
$45.00/hr
Saturday (overtime)
200%
$60.00/hr
Sunday (all hours)
200%
$60.00/hr
Public holiday
250%
$75.00/hr
⚠️ These are common Modern Award defaults, not universal rules. Actual rates vary meaningfully by award — Sunday rates alone range from around 150% to 200% depending on industry. Always check the Fair Work Ombudsman's award finder for your specific award before relying on any figure here for a formal calculation.
Saturday, Sunday and Public Holiday Rates
Weekend and public holiday penalty rates are separate entitlements from overtime, compensating employees for working outside the traditional Monday-to-Friday working week. Public holiday rates are typically the highest — commonly 250% — reflecting both the penalty nature of the work and, for permanent employees, the loss of a day that would otherwise be paid leave.
Who Is Entitled to Overtime?
Full-time award-covered employees are generally entitled to overtime once they exceed their ordinary weekly or daily hours.
Part-time employees typically receive overtime rates once they exceed either their agreed part-time hours or the relevant award's full-time ordinary hours, depending on the specific award.
Casual employees generally receive a casual loading (commonly 25%) instead of paid leave entitlements, and separately may still be entitled to overtime and penalty rates depending on their award.
Salaried and award-free employees may have overtime absorbed into an annualised salary arrangement, or may not receive separate overtime pay if their role sits outside award coverage — check your specific contract and any applicable award.
How Overtime Is Taxed
Overtime is taxed at your normal marginal rate — there's no special "overtime tax rate" in the Australian system. It's simply added to your other income for the year and taxed according to your total annual income bracket. Two things commonly cause confusion:
Withholding on a single big pay can look high. PAYG withholding tables apply as if that pay rate continued all year, so a one-off large overtime payment can be withheld at a rate that looks steep for that pay period — this reconciles correctly at tax time.
Overtime can genuinely push you into a higher bracket. If your income is close to a bracket threshold ($45,000, $135,000, $190,000), enough extra overtime income can tip some of it into the next bracket. Toggle your annual income into the calculator above to see whether this applies to you.
Superannuation Guarantee is generally payable on Ordinary Time Earnings (OTE), and overtime is typically excluded from OTE unless your award or agreement specifically classifies it otherwise. In practice, this means most overtime pay doesn't attract additional super — a detail some employees are surprised by. Check your award or agreement, or see our Super Contributions Calculator to understand your position further.
Reasonable Additional Hours and Your Rights
Under the National Employment Standards, employers can only request or require "reasonable" additional hours beyond the standard 38-hour week. What counts as reasonable considers factors including any risk to health and safety, personal circumstances, notice given, and the needs of the workplace. Employees generally have the right to refuse unreasonable additional hours. If you believe you're not being paid correctly for overtime worked, the Fair Work Ombudsman provides free advice and a formal complaints process.
Worked Examples
Scenario
Base Rate
Hours
Gross Overtime/Penalty Pay
3hrs weekday overtime
$32.50/hr
2hrs @1.5x + 1hr @2.0x
$162.50
4hrs Saturday work
$32.50/hr
4hrs @1.5x
$195.00
Same scenario, casual loading
$32.50/hr +25%
3hrs weekday OT
$203.13
Use the calculator above with your own base rate, hours and loading status for a figure specific to your situation, including the after-tax value.
Common Mistakes
Assuming all awards use the same rates. The 150%/200% split shown here is common but not universal — always verify against your specific award.
Confusing overtime with penalty rates. A Saturday shift within your ordinary hours can attract a penalty rate without being "overtime" in the technical sense.
Assuming overtime is taxed at a special rate. It isn't — it's taxed at your normal marginal rate, just added to your other income for the year.
Assuming super is payable on all overtime. Overtime is typically excluded from Ordinary Time Earnings unless your award says otherwise.
Not checking whether casual loading compounds with penalty rates correctly. Some awards don't simply multiply the two together — verify with your specific award rather than assuming.
Frequently Asked Questions
It depends on your Modern Award or Enterprise Agreement. Award-covered employees are generally entitled to overtime rates after ordinary hours (often 38 hours per week). Some employees are award-free or have overtime absorbed into an annualised salary — check your contract and applicable award.
Time-and-a-half is 150% of your ordinary hourly rate — the common minimum overtime rate under most awards for the first hours of overtime. On a $28/hour base rate, time-and-a-half is $42/hour.
It depends on award coverage and contract terms. Award-covered employees generally earn overtime once they exceed ordinary hours regardless of salary arrangement. Some awards permit annualised salary arrangements that absorb expected overtime.
Extra pay for hours worked beyond your ordinary hours, calculated as your base rate multiplied by a penalty multiplier set by your award — commonly 150% then 200% for weekday overtime, with separate rates for weekends and public holidays.
Hours worked beyond your ordinary hours for the day or week, as defined by your Modern Award or Enterprise Agreement — commonly beyond 38 hours a week, though the exact threshold varies by award.
Commonly 150% for the first hours of weekday overtime, rising to 200% beyond that — but the exact rate is set by your specific award and can differ meaningfully by industry.
Double time is 200% of your ordinary hourly rate — commonly applied to weekday overtime beyond the first 2–3 hours, and often to Sunday work across many awards.
Commonly 150% of your ordinary rate for Saturday ordinary hours, rising higher for Saturday overtime — though the exact rate varies significantly by award and industry.
Commonly 200% of your ordinary rate across many awards, though some awards set Sunday rates lower, around 150–175%. Always check your specific award.
Commonly 250% of your ordinary rate — among the highest penalty rates, reflecting both the nature of the work and, for permanent employees, the loss of an otherwise paid day off.
Often yes, depending on the award — casual employees can be entitled to both their casual loading and overtime or penalty rates, though how the two interact (whether they compound or the higher rate simply applies) varies by award.
Generally yes, once they exceed their agreed part-time hours or the award's full-time ordinary hours threshold, depending on the specific award's rules.
It depends on award coverage. Some salaried arrangements absorb overtime into an annualised salary; award-covered employees are generally still entitled to overtime rates regardless of salary structure unless a valid annualised salary clause applies.
Genuine independent contractors generally aren't covered by awards or the overtime provisions that apply to employees — their pay is governed by their contract instead. See our Contractor vs Employee Calculator if you're unsure of your classification.
No — overtime is taxed at your normal marginal rate, added to your other income for the year. There's no special overtime tax rate, though a single large payment can see higher withholding for that specific pay period.
It can, if your income is close to a bracket threshold ($45,000, $135,000 or $190,000) and the extra overtime income tips some of it into the next bracket. Use the calculator above with your annual income to check whether this applies to you.
The same marginal rate that applies to your other income at that level — there's no separate overtime rate. Use the calculator above to see the estimated after-tax value of your specific overtime pay.
Yes — overtime pay is included in your taxable income, which the 2% Medicare levy is calculated on, so additional overtime income increases your Medicare levy slightly along with your income tax.
Usually not — overtime is typically excluded from Ordinary Time Earnings (OTE), which Superannuation Guarantee is calculated on, unless your specific award or agreement classifies it otherwise.
Employers can request or require "reasonable" additional hours under the National Employment Standards. What's reasonable depends on factors like health and safety risk, personal circumstances, and notice given — employees can generally refuse unreasonable requests.
Hours beyond the standard 38-hour week that don't pose unreasonable risk or hardship, considering factors including health and safety, the employee's personal circumstances, notice given, and the needs of the workplace — assessed case by case.
Yes, if the requested hours are unreasonable under the National Employment Standards — factors like risk to your health and safety, family responsibilities, and insufficient notice can make a request unreasonable to refuse.
Raise it with your employer first if possible. If unresolved, the Fair Work Ombudsman offers free advice, and you can lodge a formal complaint or dispute through their process, including potential recovery of unpaid entitlements.
Yes, if your award or agreement allows Time Off In Lieu (TOIL) and you and your employer agree — TOIL arrangements must generally be in writing and specify how and when the time off will be taken.
The gross pay calculation uses common Modern Award defaults (150%/200% weekday, 150% Saturday, 200% Sunday, 250% public holiday) — actual rates vary by award. The tax impact uses official ATO-published brackets, LITO and Medicare levy rules for 2026–27 and 2025–26. Always verify your exact award entitlement with the Fair Work Ombudsman.
Overtime and penalty rates in Australia are set by your Modern Award or Enterprise Agreement, commonly ranging from 150% to 250% of your ordinary rate depending on the day and hours worked. It's taxed at your normal marginal rate — no special overtime rate exists — though a big week can genuinely push part of your income into a higher bracket. Use the calculator above with your own base rate, hours and annual income for both the gross pay and the real after-tax value.