Pay types
Overtime and Penalty Rates Explained
Short answer
Overtime is paid at a higher multiple of your base rate for hours beyond your ordinary hours, commonly 1.5x for the first few hours then 2x. Penalty rates apply to weekends, evenings and public holidays. Your award sets the exact multipliers, and overtime generally does not attract the 12% super guarantee.
Common multipliers
Saturday is often 1.5x, Sunday 1.75x-2x and public holidays around 2.5x, but it varies by award. Overtime is commonly 1.5x for the first hours then 2x. Always confirm with the Fair Work Pay and Conditions Tool.
Tax and super
Extra pay is taxed like the rest of your income, though a big one-off pay can be over-withheld for that period. Super is generally not paid on overtime.
Frequently asked questions
Is overtime taxed more?+
No special overtime tax, but a large one-off pay can push that pay into higher withholding, which evens out at tax time.
Do I get super on penalty rates?+
Penalty rates on ordinary hours usually attract super; most overtime does not.
Who sets my penalty rates?+
Your modern award or enterprise agreement. Check Fair Work for your specific entitlements.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
Related calculators & guides
Try the Overtime Calculator
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