Overtime Calculator

How overtime works in Australia

Under Australian workplace law, full-time employees work a standard 38-hour week. Hours worked beyond this are generally classified as overtime and attract higher rates of pay. The specific overtime rates depend on the employee's applicable Modern Award or Enterprise Agreement.

Most awards provide for time and a half (1.5x) for the first two to three hours of overtime, then double time (2x) thereafter. Weekend work typically attracts Saturday rates of 1.5x and Sunday rates of 2x, while public holidays are commonly paid at 2.5x the base rate. These rates can vary significantly between awards - for example, hospitality and retail awards have different penalty structures to manufacturing or healthcare awards.

How to use this overtime calculator

1. Enter the employee's base hourly rate and the number of standard hours worked in the pay period (typically 38 for full-time).
2. Add overtime hours broken down by rate type: time-and-a-half (1.5x) hours and double-time (2x) hours.
3. If applicable, enter weekend hours (Saturday at 1.5x, Sunday at 2x) and public holiday hours (2.5x).
4. Review the breakdown showing base pay, overtime pay by category, and total gross pay for the period.
5. Use the annualised projection to estimate the full-year cost of recurring overtime patterns.

Fair Work penalty rates and Modern Award obligations

Employers must keep accurate records of all hours worked, including overtime. The Fair Work Act requires time-and-wages records to be kept for 7 years. Failure to keep proper records can result in penalties of up to $93,900 per contravention for companies and reverses the burden of proof in underpayment claims - meaning the employer must prove the hours were not worked. Key awards with specific overtime provisions include the Manufacturing and Associated Industries Award (overtime after 38 hours or 8 hours in a day), the Building and Construction General On-site Award (overtime after 36 hours for a 4-day week), and the General Retail Industry Award (overtime after 38 hours with specific Saturday and Sunday rates). Employees can also refuse unreasonable overtime requests under the NES, with factors like health and safety, family responsibilities, and notice given all considered when determining reasonableness.

Superannuation on overtime pay

A common question is whether super must be paid on overtime. Under the superannuation guarantee, employers must pay super on ordinary time earnings (OTE). Overtime is generally excluded from OTE under the ATO's broad definition, meaning super is not payable on overtime hours. However, if an employee's contract or award includes a guaranteed overtime component as part of their salary package, that guaranteed overtime may be classified as OTE and attract super. The distinction matters - getting it wrong can result in Superannuation Guarantee Charge penalties from the ATO, including interest and an administration fee.

How AP automation supports accurate payroll costing

Payroll is often the largest expense for industrial businesses. When overtime calculations are wrong, the downstream effects flow into supplier payments, cash flow forecasting, and financial reporting. Automating the accounts payable process ensures payroll-related costs are captured accurately and on time, giving management a reliable view of true labour costs.