A worked example
Sarah works as a retail assistant in Melbourne on a base rate of $28 per hour under the General Retail Industry Award. On a typical week, she works her standard 38 hours Monday to Friday. This week, she also worked 4 hours on Saturday (time-and-a-half) and 6 hours on Sunday (double time).
Her regular pay for 38 hours is $28 × 38 = $1,064. Her Saturday overtime is $28 × 1.5 × 4 = $168. Her Sunday penalty rate is $28 × 2 × 6 = $336. Sarah's total gross pay for the week is $1,064 + $168 + $336 = $1,568.
If Sarah had also worked Australia Day (a public holiday) for 8 hours, she would receive double-time-and-a-half under the award: $28 × 2.5 × 8 = $560 for that day alone. Public holiday rates stack on top of overtime provisions, so understanding your award or enterprise agreement is critical for getting the right pay.
State-by-state differences
- NSW, VIC, QLD, WA, SA, TAS, ACT, NT: Overtime rates are governed by the Fair Work Act 2009 and modern awards, which apply nationally. There are no state-based variations in overtime percentages (1.5x, 2x) for employees under the federal system.
- Public holidays: Each state and territory observes different public holidays. Melbourne Cup Day applies only in metropolitan Melbourne (VIC), Ekka Wednesday only in Brisbane (QLD), and Royal Hobart Regatta Day only in parts of Tasmania. Check your state's official public holiday list as rates typically jump to 2.5x on these days.
- State awards: Western Australia retains a state industrial relations system for some employers not covered by the federal system. WA employees under state awards may have different overtime thresholds or rates set by the WA Industrial Relations Commission.
- Industry variations: Hospitality, healthcare, and emergency services often have different overtime triggers. Nurses might accrue time-in-lieu instead of cash overtime, while construction workers may have rostered days off (RDOs) built into their agreements instead of traditional overtime.
Common mistakes people make
- Assuming all hours beyond 38 are overtime: Many employees are on annualised salaries that already bundle reasonable overtime into their base pay. Check your contract. If you're salaried and earning above the Fair Work high-income threshold ($183,100 as at 2025-26), you may not be entitled to award overtime at all unless your agreement specifies it.
- Confusing penalty rates with overtime: Weekend and evening penalty rates (common in retail and hospitality) are different from overtime. A casual working Saturday might get 1.5x as a penalty rate, but that's not overtime unless they've exceeded their ordinary hours. Overtime usually kicks in after a set number of hours per day or week, depending on the award.
- Not checking public holiday entitlements: If you work a public holiday, you're usually entitled to at least 2.5x your base rate, plus sometimes a day off in lieu. Many employees don't claim the substitute day or accept single-time payment when they should be getting much more.
- Ignoring enterprise agreements: Your workplace might have an enterprise agreement (EA) that sets different overtime rates or thresholds than the modern award. EAs override awards as long as employees are better off overall, so always check your specific agreement.
What this calculator doesn't account for
This calculator provides a straightforward calculation of overtime at standard 1.5x and 2x rates. It does not account for annualised salary arrangements, where overtime may already be built into your base pay. It doesn't handle time-in-lieu (TOIL) arrangements, where you bank hours instead of receiving cash payment. The calculator assumes you're paid hourly under an award or agreement that specifies penalty rates.
It won't calculate allowances (meal breaks, travel, tools), loadings for shift work or split shifts, or industry-specific penalty rates that vary by time of day. If your enterprise agreement has custom overtime clauses (such as triple time after 12 hours, or overtime only after 40 hours per week), the standard rates shown won't apply. Superannuation on overtime is included in the 12% rate as at 2025-26, but the calculator doesn't itemise it separately.
Edge cases and nuances
Annualised salary employees: If you're on an annualised wage arrangement under Fair Work Regulation 2.12, your employer can average your pay over the year to cover busy and quiet periods. You might work 50 hours one week without extra pay, as long as you're better off overall. These arrangements must be reconciled annually, and you're entitled to back-pay if you've worked more than the agreement allows.
On-call and sleepover shifts: Healthcare and emergency services workers often have on-call periods paid at a lower rate (sometimes 10-20% of ordinary time), with full overtime only kicking in when called out. Sleepover shifts for disability support workers were subject to a landmark Fair Work case in 2021, clarifying that passive sleepover time is paid differently from active overnight shifts.
Piece rates and commission: If you're paid per task or on commission (common in fruit picking, delivery driving, or sales), overtime calculations get complex. Fair Work requires piece workers to earn at least the equivalent award hourly rate, including overtime premiums, but proving underpayment often requires detailed timesheets.
Seven-day rosters: Police, healthcare, and mining often use seven-day continuous rosters. Overtime may only apply after a set number of consecutive days or shifts, not after 38 hours. Check the specific award or agreement.
