Penalty Rates Calculator

Penalty rates are higher pay rates that an employee must be paid for working at times or on days that are considered unsociable in Australia. This includes working on weekends, public holidays, late at night, or early in the morning. They are a legally mandated compensation for working outside of standard hours.

The calculator determines your penalty rate pay by multiplying your base hourly rate by the penalty rate multiplier specific to the time you worked. For example, a Saturday penalty rate might be 150% (1.5x the base rate), and a public holiday rate might be 250% (2.5x the base rate). The exact multipliers are set by your specific Modern Award or Enterprise Agreement.

• Penalty rates are not optional; they are a legal entitlement for employees covered by an award or agreement that includes them. Employers cannot pay a lower rate unless a formal agreement, such as an Enterprise Agreement, has been approved by the Fair Work Commission.
• Some employers use 'loaded' or 'all-inclusive' hourly rates, which are higher than the standard base rate and are intended to cover any penalties. However, this loaded rate must still be high enough to ensure the employee is better off overall compared to being paid the base rate plus all applicable penalties.
• Industries like hospitality, retail, and healthcare rely heavily on penalty rates to compensate employees for working 24/7 rosters. Debates about reducing penalty rates are common in Australian politics, balancing business costs against fair worker compensation.

• Identify your Modern Award to find the correct penalty rates that apply to you. You can find this on the Fair Work Ombudsman website.
• Carefully check your payslip to ensure your penalty rate hours are listed correctly and paid at the right multiplier. Mistakes can and do happen.
• Keep a diary of the hours you work, especially on weekends and public holidays. This can be crucial evidence if you need to resolve a dispute about underpayment.