Penalty Rates in Australia: Your Complete Guide

Penalty rates are higher pay rates for work performed outside normal business hours.

When Do Penalty Rates Apply?

Penalty rates typically apply for:

• Evenings: Work after certain hours (varies by award)
• Saturdays: Usually 125-150% of base rate
• Sundays: Usually 150-200% of base rate
• Public Holidays: Usually 250% of base rate

Award-Specific Rates

Different awards have different penalty rates. Common examples:

Retail Award:

• Saturday: 125%
• Sunday: 150%
• Public holidays: 250%

Hospitality Award:

• Saturday: 150%
• Sunday: 175%
• Public holidays: 250%

How to Calculate

Example: If your base rate is $24/hour and you work Sunday in retail:

• Base rate: $24.00
• Sunday penalty (150%): $24.00 x 1.5 = $36.00
• You should receive: $36.00 per hour

Common Mistakes

Employers often make these errors:

1. Not paying penalty rates at all
2. Calculating from wrong base rate
3. Not stacking casual loading with penalties
4. Averaging penalty rates over the week

Verify Your Pay

Use Justiico to check if you’re receiving correct penalty rates for your industry and role.