The rule: a 38-hour week, with rates set by awards
Australia has no single national overtime rate written into legislation. The Fair Work Act 2009 (Cth) and the 11 National Employment Standards (NES) set a maximum of 38 ordinary hours per week for a full-time employee (s 62), plus any "reasonable additional hours." Beyond that cap, work is generally "overtime" — but the rate you are paid for overtime is set by your modern award or enterprise agreement, not by the Act. An employee may refuse unreasonable additional hours.
Because rates live in awards (there are over 120 of them) and agreements, the exact multiplier depends on your industry and role. That said, the dominant pattern across awards is time-and-a-half (150%) for the first 2 or 3 overtime hours, then double time (200%). Award-free employees (often higher-paid managers) may have no overtime entitlement at all — overtime is governed by their contract.
Common award overtime rates
| When worked | Typical rate (% of base) |
|---|---|
| First 2–3 hours of overtime (weekday) | 150% (time and a half) |
| After the first 2–3 hours (weekday) | 200% (double time) |
| Saturday overtime | 150% then 200% (varies by award) |
| Sunday overtime | 200% (common) |
| Public holiday work | 200%–250% (varies by award) |
| Casual loading (added to above) | +25% in many awards |
Example shown: Clerks—Private Sector Award 2020 (MA000002) — 150% for the first 3 hours Mon–Fri, 200% after; 200% Saturday, Sunday and public holidays. Always check your specific award.
Worked example (AUD)
Maya is a full-time clerk earning $30.00 per hour. In one week she works 44 hours — that is 6 hours over the 38-hour cap. Under a typical award (150% for the first 3 OT hours, 200% after):
Ordinary 38 hrs × $30.00 = $1,140.00
First 3 OT hrs × $30.00 × 150% = 3 × $45.00 = $135.00
Next 3 OT hrs × $30.00 × 200% = 3 × $60.00 = $120.00
Total weekly pay = $1,395.00
If Maya were a casual with a 25% loading folded into overtime, the multipliers would rise (e.g. 175% then 225% in some awards), increasing the total.
Rest days, weekends, night and public holidays
These premiums are also award-driven, not statutory. Many awards pay weekend "penalty rates" separate from overtime — for example Saturday 125%–150% and Sunday 150%–200% for ordinary (non-overtime) hours. Night or shift work often attracts a shift loading (roughly 115%–130%). Under the NES, employees are entitled to be absent on public holidays; if they work, awards commonly pay 200%–250%. From 30 August 2025, federal law protects existing overtime and penalty rates in modern awards from being cut by the Fair Work Commission.
Caps, exemptions and how to complain
The hard cap is the NES 38-hour ordinary week (s 62), with reasonable additional hours assessed case by case (factors include health and safety, the employee's circumstances, notice given, and the nature of the role). Key exemptions: award- and agreement-free employees rely on their contract for any overtime; some salaried staff are paid an "annualised salary" or "set-off" that absorbs overtime, provided it leaves them no worse off than the award. The national workplace regulator is the Fair Work Ombudsman (FWO). If you are underpaid, first raise it with your employer; you can then call the FWO on 13 13 94 (8am–5:30pm Mon–Fri) or lodge an enquiry — including anonymously — at fairwork.gov.au. The FWO can investigate, contact your employer, and help recover unpaid amounts.
- Does Australia have a legal overtime rate?
- No single statutory rate. The Fair Work Act sets a 38-hour ordinary week, but overtime pay rates are set by modern awards and enterprise agreements. The most common pattern is 150% then 200%.
- When does overtime start?
- Generally for hours beyond 38 in a week (or beyond the ordinary daily/weekly hours set by your award or agreement). Your award defines exactly when overtime applies.
- Can my employer make me work overtime?
- They can request reasonable additional hours, but you may refuse hours that are unreasonable based on safety, your personal circumstances, notice given and other factors.
- What if I'm on a salary?
- Salaried award-covered employees must still be paid at least what the award requires, including overtime, unless an annualised-salary or set-off clause lawfully covers it and leaves you no worse off.
- How do I report unpaid overtime?
- Contact your employer first, then the Fair Work Ombudsman on 13 13 94 or via fairwork.gov.au. Reports can be anonymous, and the FWO can investigate underpayments.