Overtime Pay Rights in Australia
Last updated: June 2026
Ordinary Hours and When Overtime Applies
Under the Fair Work Act, the maximum ordinary hours for a full-time employee are 38 hours per week. Hours worked beyond 38 per week are generally overtime.
However, whether you receive overtime pay — and at what rate — depends on your Modern Award or enterprise agreement. Award-free employees may negotiate overtime arrangements directly.
Reasonable Additional Hours
Your employer can request you work reasonable additional hours beyond 38 per week. What is "reasonable" depends on:
- Any risk to health and safety
- Your personal circumstances (family responsibilities etc.)
- The operational needs of the business
- Whether you receive overtime pay or compensation
You can refuse unreasonable overtime requests.
Common Overtime Rates Under Awards
Most Modern Awards provide:
| Hours | Rate |
|---|---|
| First 3 hours overtime | 150% (time and a half) |
| After 3 hours overtime | 200% (double time) |
| Overtime on Sunday | 200% |
| Overtime on public holidays | 250% |
These rates vary by award — check your specific Modern Award at fairwork.gov.au.
Penalty Rates for Shift Workers
Shift workers often receive penalty rates rather than strict overtime:
- Afternoon/evening shifts: Usually 115–130% of ordinary rate
- Night shifts: Usually 125–130%
- Saturday: Usually 125–150%
- Sunday: Usually 150–200%
Time Off in Lieu (TOIL)
Some awards and agreements allow you to take paid time off instead of overtime payment (TOIL). TOIL must be:
- Agreed in writing before the overtime is worked (under most awards)
- Taken at a rate that equals the overtime pay you would have received
- Taken within a reasonable period (often within 6 months)
Salary Absorption
If you are on a salary, your contract may say that salary "absorbs" overtime up to a certain point. This is only lawful if your effective hourly rate (including overtime) does not fall below your award or minimum wage entitlement.
Annualised Salary Arrangements
Some awards allow annualised salary arrangements where overtime is factored into your yearly salary. Your employer must still track your hours and conduct an annual reconciliation to ensure your salary compensates for all overtime worked. If there's a shortfall, you must be paid the difference.
How to Recover Unpaid Overtime
If you believe you're owed unpaid overtime:
- Calculate your entitlement using your award rate
- Raise it with your employer first
- If unresolved, lodge a complaint with the Fair Work Ombudsman
- You can also apply to the Federal Circuit and Family Court
The limitation period for underpayment claims is generally 6 years.