Business

Understanding Overtime in Australia: What You Should Be Paid For Extra Hours

Published

2 weeks ago

June 30, 2025

Amaya Zelleron

Understanding Overtime in Australia: What You Should Be Paid For Extra Hours Working beyond your standard hours? Whether it’s staying late, covering a shift, or responding to out-of-hours requests, you may be entitled to overtime pay. But many Australian workers don’t realise they’re working extra hours without proper compensation. Here’s what you need to know about your overtime rights, how it’s calculated, and what to do if you’re missing out. What Is Overtime? Overtime refers to work performed beyond your ordinary hours, as defined by your award, enterprise agreement, or contract. For most full-time employees, this means work beyond: 38 hours per week, or The agreed ordinary hours per day/week How Is Overtime Paid? If you're eligible for overtime, you should receive penalty rates, which can include: Time and a half (150% of your base rate) for the first few hours Double time (200%) for any additional hours Higher rates for weekends, public holidays or unsociable hours Your award or agreement will specify the exact rates. Who Is Eligible for Overtime Pay? Not everyone automatically qualifies. You're generally entitled to overtime if: You're a waged employee (not salaried) Your award or agreement provides for it You're directed to work extra hours beyond your ordinary schedule Salaried employees may not be entitled to separate overtime if their pay is designed to cover reasonable additional hours. Common Myths About Overtime "You're on salary, so you don't get overtime" – Not always true. If you're working excessive hours regularly, your salary may not be adequate. "If I volunteer to stay late, I can't claim it" – If your employer knows and allows it, you may still be entitled. "Casuals don't get overtime" – Casual workers can be entitled to overtime and penalty rates depending on their award. What to Do If You're Not Being Paid Overtime Check your award or agreement for your entitlement details Record all hours worked beyond your ordinary schedule Raise the issue with your employer in writing If unresolved, contact your union for support How Unions Help With Overtime Disputes Unions can: Help you calculate what you’re owed Negotiate backpay or fairer rostering Challenge exploitative practices Ensure your rights are respected without risk of retaliation Know Your Worth – and Your Time Working extra hours without fair compensation isn’t just unfair—it’s unlawful. Your time is valuable, and you deserve to be paid properly for it. If you’re unsure about your rights or believe you're missing out on overtime, speak with your union or the Fair Work Ombudsman. Don’t let unpaid work go unnoticed.

Working beyond your standard hours? Whether it’s staying late, covering a shift, or responding to out-of-hours requests, you may be entitled to overtime pay. But many Australian workers don’t realise they’re working extra hours without proper compensation. Here’s what you need to know about your overtime rights, how it’s calculated, and what to do if you’re missing out.

Table of Contents

What Is Overtime?

Overtime refers to work performed beyond your ordinary hours, as defined by your award, enterprise agreement, or contract. For most full-time employees, this means work beyond:

38 hours per week, or
The agreed ordinary hours per day/week

How Is Overtime Paid?

If you’re eligible for overtime, you should receive penalty rates, which can include:

Time and a half (150% of your base rate) for the first few hours
Double time (200%) for any additional hours
Higher rates for weekends, public holidays or unsociable hours

Your award or agreement will specify the exact rates.

Who Is Eligible for Overtime Pay?

Not everyone automatically qualifies. You’re generally entitled to overtime if:

You’re a waged employee (not salaried)
Your award or agreement provides for it
You’re directed to work extra hours beyond your ordinary schedule

Salaried employees may not be entitled to separate overtime if their pay is designed to cover reasonable additional hours.

Common Myths About Overtime

“You’re on salary, so you don’t get overtime” – Not always true. If you’re working excessive hours regularly, your salary may not be adequate.
“If I volunteer to stay late, I can’t claim it” – If your employer knows and allows it, you may still be entitled.
“Casuals don’t get overtime” – Casual workers can be entitled to overtime and penalty rates depending on their award.

What to Do If You’re Not Being Paid Overtime

Check your award or agreement for your entitlement details
Record all hours worked beyond your ordinary schedule
Raise the issue with your employer in writing
If unresolved, contact your union for support

How Unions Help With Overtime Disputes

Unions can:

Help you calculate what you’re owed
Negotiate backpay or fairer rostering
Challenge exploitative practices
Ensure your rights are respected without risk of retaliation

Know Your Worth – and Your Time

Working extra hours without fair compensation isn’t just unfair—it’s unlawful. Your time is valuable, and you deserve to be paid properly for it.

If you’re unsure about your rights or believe you’re missing out on overtime, speak with your union or the Fair Work Ombudsman. Don’t let unpaid work go unnoticed.