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Overtime & Penalty Rate Calculator 2026-27

The overtime rate in Australia is a multiple of the ordinary hourly rate set by the award or agreement covering the job, for example 1.5x for the first two or three hours and 2.0x after that under the Hospitality and General Retail awards; there is no single national overtime rate. Overtime applies beyond 38 ordinary hours a week for full-time staff and is taxed at the 2026-27 marginal rates. Enter your base hourly rate and the penalty multiplier to see gross and net overtime earnings after tax.

Official ATO ratesUpdated FY2026-27Free foreverNo signup required

Calculate Your Overtime Pay

$
Net Overtime Pay
$245
for 8 hours at 1.5×

Breakdown

Base Rate$30.00/hr
Penalty Rate (1.5×)$45.00/hr
Gross Overtime (8 hrs)$360
Est. Tax (32% incl. Medicare)-$115
Net Overtime Pay$245

Weekly Scenario

Standard Pay (38hrs × $30.00)$1,140
+ Overtime Pay+$360
Total Weekly Gross$1,500

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A warehouse worker in an orange hi-vis vest stands at a loading dock door at dusk, pallets and a forklift behind

How Is Overtime Pay Calculated in Australia?

Overtime pay in Australia is calculated by multiplying your base hourly rate by the penalty multiplier set in your Modern Award or enterprise agreement, then multiplying by the number of overtime hours worked. The formula is: Base Rate x Penalty Multiplier x Overtime Hours = Gross Overtime Pay.

Full-time employees on a standard 38-hour week are paid overtime for work beyond 38 ordinary hours a week, beyond the maximum ordinary hours a day set in their award, or outside the award's spread of ordinary hours (for example, 7am to 7pm). Part-time employees trigger overtime after exceeding their agreed contracted hours. Overtime earnings are taxed under the same income tax brackets as your regular salary, so your take-home pay from overtime depends on your marginal tax rate.

Worked Example: Overtime at $35/hr

A warehouse worker earns a base rate of $35.00/hr. They work 6 overtime hours on a weekday at time-and-a-half (1.5x), and their taxable income places them in the 30% marginal tax bracket.

  1. Penalty rate: $35.00 x 1.5 = $52.50/hr
  2. Gross overtime: $52.50 x 6 hours = $315.00
  3. Estimated tax (30% + 2% Medicare levy): $315.00 x 0.32 = $100.80
  4. Net overtime pay: $315.00 - $100.80 = $214.20

Use our Take-Home Pay Calculator to see how overtime earnings affect your total weekly, fortnightly, or annual after-tax income.

What Are the Overtime Penalty Rates?

Overtime penalty rates range from 1.5x to 2.5x the base hourly rate, depending on the day, time, and applicable Modern Award. The Fair Work Commission sets minimum penalty rates in modern awards covering industries including retail, hospitality, healthcare, manufacturing, and construction.

When You WorkFull-Time / Part-TimeCasualExample ($26.44/hr base)
Saturday1.25× – 1.5×1.5× – 1.75×$39.66/hr
Sunday1.5× – 2.0×1.75× – 2.25×$52.88/hr
Public Holiday2.0× – 2.5×2.25× – 2.75×$66.10/hr
Overtime (first 2-3 hrs)1.5×1.5× to 1.75×$39.66/hr
Overtime (after 2-3 hrs)2.0×2.0× to 2.25×$52.88/hr

Exact multipliers vary by Award. Casual overtime depends on the award: the General Retail Award pays casuals 175% then 225% of the minimum hourly rate (the 25% loading is included), the Hospitality Award pays casuals the full-time overtime rate with no loading (except on public holidays), and the Nurses Award pays 150% then 200% of the casual hourly rate. Use the Fair Work PACT tool to check your specific award penalties.

Penalty Rates by Award Type

Different Modern Awards set different penalty structures. The table below compares the full-time and part-time overtime multipliers for weekday, Sunday and public holiday overtime across 5 common Modern Awards for the FY2026-27 financial year. Ordinary hours (not overtime) have their own rates: a Sunday is 150% under the General Retail and Hospitality awards (175% under the Nurses Award), and a public holiday is 225% under the General Retail and Hospitality awards (200% under the Nurses Award).

Modern AwardFirst 2-3 HrsAfter 2-3 HrsSundayPublic Holiday
General Retail Industry Award1.5×2.0×2.0×2.5×
Hospitality Industry (General) Award1.5×2.0×2.0×2.25×
Nurses Award1.5×2.0×2.0×2.5×
Building and Construction General On-site Award1.5×2.0×2.0×2.5×
Clerks Private Sector Award1.5×2.0×2.0×2.5×

Who Uses This Calculator?

This Australian overtime pay calculator serves employees, employers, and payroll professionals who calculate penalty rate earnings for FY2026-27. Common use cases include:

  • Shift workers in retail, hospitality, and healthcare verifying their weekend and public holiday pay on each payslip
  • Full-time employees estimating the net value of extra hours before agreeing to overtime requests
  • Part-time workers checking whether hours above their contracted agreement trigger overtime multipliers
  • Small business owners budgeting weekly labour costs when rostering staff across weekends and public holidays
  • Payroll managers cross-checking PAYG withholding on overtime payments against ATO tax tables

If you work regular overtime, enter your total annual income in the Income Tax Calculator to confirm which marginal tax rate applies to your overtime earnings.

Overtime Pay Table by Hourly Rate

The table below shows gross overtime pay for 8 hours of overtime at common base hourly rates across 3 penalty multipliers. These figures represent gross pay before income tax and the 2% Medicare levy.

Base Hourly Rate1.5× (8 hrs)2.0× (8 hrs)2.5× (8 hrs)
$26.44/hr$317$423$529
$28.00/hr$336$448$560
$32.00/hr$384$512$640
$36.00/hr$432$576$720
$40.00/hr$480$640$800
$45.00/hr$540$720$900
$50.00/hr$600$800$1,000
$60.00/hr$720$960$1,200

The national minimum wage is $26.44/hr for FY2026-27. Rates above reflect common award classifications. Use our Hourly to Annual Salary Calculator to convert your hourly rate to an annual salary.

How Is Overtime Taxed?

Overtime earnings are taxed at your marginal tax rate because they are added on top of your regular assessable income. Every overtime dollar sits in your highest income tax bracket, identical to how bonus payments are taxed.

Your employer withholds tax from overtime pay through PAYG withholding. The ATO provides Schedule 5 (tax table for back payments and lump sums) and the standard weekly/fortnightly tax tables to calculate withholding on pay periods that include overtime. The 2% Medicare levy also applies to overtime earnings. Employees without private hospital cover whose income for MLS purposes is above $105,000 (singles, 2026-27) also pay the Medicare Levy Surcharge of 1% to 1.5%.

FY2026-27 Tax Brackets on Overtime Income

The income tax brackets below determine the marginal rate applied to your overtime. An employee earning $75,000 in base salary pays 30% plus 2% Medicare levy on every overtime dollar, reducing each $1.00 of gross overtime to $0.68 in take-home pay.

Taxable IncomeMarginal Rate+ Medicare LevyOvertime Keep Rate
$0 – $18,2000%0%100c per $1
$18,201 – $45,00015%2%83c per $1
$45,001 – $135,00030%2%68c per $1
$135,001 – $190,00037%2%61c per $1
$190,001+45%2%53c per $1

Do I Get Super on Overtime?

Overtime is generally not classified as Ordinary Time Earnings (OTE) and does not attract the 12% Superannuation Guarantee for FY2026-27. The ATO defines OTE as the earnings an employee receives for ordinary hours of work, and overtime hours fall outside that definition. Payday Super (from 1 July 2026) calculates SG on "qualifying earnings", which still exclude overtime where ordinary hours are clearly identified.

Some enterprise agreements or employment contracts include overtime in the superannuation calculation base. Check your employment agreement or contact your employer's payroll team to confirm. Use our Superannuation Calculator to calculate the SG contribution on your ordinary time earnings separately.

What Are Common Overtime Pay Mistakes?

Underpayment of overtime is one of the most common payroll compliance issues in Australia, with the Fair Work Ombudsman recovering $453 million in underpaid wages in FY2025-26 alone. These 5 mistakes occur most frequently:

  1. Applying the wrong multiplier: Using 1.5x for all overtime hours instead of escalating to 2.0x after the first 2 or 3 hours, as each award in the table above requires
  2. Using the wrong base for casual overtime: Awards differ. The General Retail Award pays casuals 175% for the first 3 hours and 225% after that, which includes the 25% casual loading. The Hospitality Award pays casuals the full-time overtime rate with no loading, except on public holidays
  3. Ignoring part-time overtime triggers: Part-time employees earn overtime after exceeding their agreed hours, not after 38 hours per week
  4. Missing public holiday penalties: Australia has 8 national public holidays and additional state-specific holidays, each attracting 2.0x to 2.5x penalty rates
  5. Using the wrong tax bracket: Overtime sits on top of your base salary, so the marginal rate on overtime is typically higher than your average tax rate across all income

If you suspect your overtime is underpaid, compare your payslip against the result from the overtime pay calculator above and check the pay guide for your award on the Fair Work Ombudsman website.

Related Calculators

Use these calculators to see how overtime pay affects your weekly pay, income tax, take-home pay and super:

How this calculator works▼

Overtime pay is estimated using:

  • Gross overtime = base hourly rate × multiplier × hours
  • Tax estimated at your selected marginal bracket + 2% Medicare levy
  • Actual withholding may vary based on your total annualised earnings
  • Does not account for HECS, salary sacrifice, or other deductions

Frequently Asked Questions

Overtime pay is your base hourly rate multiplied by the overtime rate set in your award or enterprise agreement. Time-and-a-half on a $30/hr base rate is $45/hr. Your award sets how many hours are paid at the first rate. The Hospitality Award pays 150% for the first 2 overtime hours Monday to Friday and 200% after that. The General Retail Award pays 150% for the first 3 hours Monday to Saturday and 200% after that.

For most full-time employees, overtime begins after 38 hours per week (or 7.6 hours per day). Your award or enterprise agreement sets the exact threshold, including whether a part-time employee earns overtime for hours past their agreed hours.

Yes, where your award gives casuals overtime, and the Hospitality and General Retail awards both do. Your award sets when it starts, such as after 38 hours a week or past a daily maximum. Awards differ on the casual loading. The Hospitality Award pays casual overtime on the ordinary rate without the loading, so casuals get the same overtime dollars as full-time staff except on public holidays. The General Retail Award includes the loading: 175% for the first 3 hours, against 150% for full-time staff. In both awards, casual weekend and public holiday rates are higher for the same reason: a General Retail casual gets 150% on Saturday against 125% for permanent staff, and the gap is the 25% casual loading, which casuals are paid instead of paid leave.

You can refuse overtime if it is unreasonable. Under the National Employment Standards, an employer can request "reasonable overtime". The factors that decide whether it is reasonable include your personal circumstances, the notice given, your role, and health and safety risks. The Fair Work Ombudsman publishes guidance on what counts as reasonable overtime.

The 12% Superannuation Guarantee is not paid on overtime where your award or agreement clearly sets your ordinary hours. From 1 July 2026, super is worked out on "qualifying earnings", and the ATO excludes overtime, where ordinary hours are clearly identified in an award or agreement, the same as under the old ordinary time earnings rule. An enterprise agreement or employment contract can require your employer to pay super on overtime as well, so check yours.

Overtime pushes only the part of your income above a bracket threshold into the higher tax bracket, not your entire income. Overtime adds to your total assessable income for the financial year. If total earnings including overtime cross an income tax bracket threshold (for example, from $45,000 to above $45,001), the portion above the threshold is taxed at the higher marginal rate of 30% instead of 15%.

Time off in lieu (TOIL) lets you take paid time off instead of overtime pay, but only where your award, enterprise agreement or contract allows it. The National Employment Standards do not provide TOIL. The award sets the ratio. The Clerks, Hospitality, Manufacturing, Security and SCHADS awards give time off hour for hour. The General Retail, Fast Food and Pharmacy awards give time equal to the overtime payment (2 hours at 150% = 3 hours off). You must genuinely agree to TOIL; an employer cannot unilaterally substitute it for overtime pay.

The National Employment Standards do not set a hard cap on overtime hours. However, an employer can only request "reasonable" additional hours. Under the Fair Work Act 2009, whether additional hours are reasonable depends on factors such as any risk to health and safety, your family responsibilities, the notice given, and the usual patterns of work in the industry.

Sources & References

  1. 1
    Overtime and penalty rates, Fair Work Ombudsman
  2. 2
    Individual income tax rates, Australian Taxation Office

Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.

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People reading this page usually work these out too.