How Overtime Works in Australia
Under the Fair Work Act 2009 and Modern Awards, full-time employees are generally entitled to overtime pay when they work more than 38 hours per week or 7.6 hours per day. Overtime is a critical part of Australian employment law and understanding your entitlements can make a significant difference to your pay.
Overtime Tiers Explained
Most Modern Awards follow a two-tier overtime structure:
- Tier 1 (Time and a half): 150% of the base rate for the first 2 hours of overtime
- Tier 2 (Double time): 200% of the base rate for each subsequent hour of overtime
Weekend and Public Holiday Overtime
Overtime rates differ on weekends and public holidays. Saturday overtime is typically 150-200%, Sunday overtime is usually 200%, and public holiday overtime is generally 250% of the base rate.
Casual Employee Overtime
Casual employees are also entitled to overtime. The 25% casual loading is applied to ordinary hours only -- overtime rates are calculated on the base hourly rate (before casual loading).