Penalty rates
Penalty rates are higher pay rates that can apply when an employee works particular hours or days such as evenings, weekends or public holidays. Find out how to calculate them.
On this page:
- What are penalty rates?
- Calculating penalty rates
- Workplace arrangements affecting penalty rates
- Tools and resources
- Related information
What are penalty rates?
Penalty rates are higher pay rates that employees need to be paid for working particular hours or days.
Employees may be entitled to a penalty rate when working:
- weekends
- public holidays
- overtime
- late nights shifts or
- early morning shifts.
Calculating penalty rates
The penalty rates that you or your employees are entitled to will depend on the award that applies. Use our Pay and Conditions Tool to calculate penalty rates in your industry.
You can also check out our downloadable pay guides for common penalties in your industry.
If you're covered by an enterprise agreement or other registered agreement, your penalty rates will be in your agreement. To find an enterprise agreement, go to the Fair Work Commission website.
Workplace arrangements affecting penalty rates
Some workplace arrangements can affect the payment of penalty rates. These include:
- Annualised wages
- Employment contracts
- Individual flexibility arrangements (IFAs)
- a guarantee of annual earnings.
The overall amount an employee is paid under one of these arrangements has to be at least the same as the amount they would be paid under their award or agreement.
The wages in salary payments, employment contracts, IFAs and guarantees of annual earnings need to compensate for other penalties and loadings in an applicable award.
