Overtime, Penalty Rates and Shift Loading Explained

Working back late on a Friday, picking up a Saturday shift, or covering an early or a night shift all pay differently — and most tradies have a rough sense of “overtime pays more” without actually knowing the real numbers. Here’s what the construction award actually sets out.

The short version (TL;DR)

• Most on-site construction workers are covered by the Building and Construction General On-site Award (MA000020), which sets minimum overtime, penalty rate and shift loading entitlements.
• Overtime Monday to Friday is commonly 175% of your normal rate for the first two hours, rising to 225% after that.
• Sunday work is commonly paid at 225%, and public holidays at 275%.
• Shift loading applies to rostered shifts outside normal daytime hours — shiftworkers get the higher of a 17.5% annual leave loading or the actual shift/weekend penalty rates they would have earned.
• Casual loading (25%) stacks on top of penalty rates — meaning casual tradies on weekend or overtime work are often earning noticeably more per hour than the base rate suggests.
• These are award minimums — your actual entitlement depends on your specific award, enterprise agreement, and employment type, so always confirm your exact rate rather than relying on general figures.

Overtime: what the numbers actually mean

Under the Building and Construction Award, overtime for work outside your ordinary hours Monday to Friday is commonly calculated as 175% of your normal rate for the first two hours of overtime, then 225% after that. In plain terms: if your normal rate is $40/hour, the first two overtime hours are paid at $70/hour, and anything beyond that at $90/hour — though your exact rate depends on your specific classification and any enterprise agreement that might apply instead of the base award.

Weekend and public holiday rates

• Sunday work is commonly paid at 225% of your ordinary rate under the award.
• Public holidays are commonly paid at 275% — the highest standard penalty rate under the award.
• Saturday rates sit between weekday and Sunday rates under most awards, though the exact percentage depends on your specific classification.

Shift loading: different from overtime

Shift work is a separate concept from overtime — it applies to rostered shifts outside normal daytime hours (early mornings, evenings, nights), where you’re specifically engaged and paid as a shiftworker rather than just working late occasionally. Shiftworkers under the award get the higher of two options: a 17.5% annual leave loading, or the actual shift and weekend penalty rates they would have earned — whichever works out to more for that period.

Casual loading stacks on top

If you’re a casual tradie, the 25% casual loading (paid in place of leave entitlements permanent employees get) is added on top of whatever penalty rates apply — meaning a casual working a Sunday shift is generally earning more per hour than a permanent employee’s Sunday rate alone would suggest, once both loadings are combined correctly.

Why you should actually check your payslip against this

These figures are common award minimums, but your specific award, classification, state, and any enterprise agreement in place can shift the exact numbers. The Fair Work Ombudsman’s P.A.C.T. tool remains the authoritative way to confirm your exact entitlement — general guides like this one are useful for understanding the concepts, not for confirming your specific legal minimum rate.

Frequently asked questions

Am I automatically covered by the Building and Construction Award?
Most on-site construction workers are, but coverage depends on your specific role, employer, and whether an enterprise agreement applies instead — check your payslip or ask your employer which award or agreement covers you specifically.

Is overtime pay the same as penalty rates?
They’re related but distinct concepts — overtime applies to hours worked beyond your ordinary hours, while penalty rates apply to work performed at specific unsociable times (evenings, weekends, public holidays) regardless of whether it’s also overtime.

Do casuals get penalty rates on top of casual loading?
Generally yes — casual loading (commonly 25%) is paid in place of leave entitlements, and penalty rates for weekend, overtime or public holiday work generally still apply on top of that loading.

How do I check if I’m actually being paid correctly?
Use the Fair Work Ombudsman’s P.A.C.T. (Pay and Conditions Tool) to calculate your exact correct rate based on your specific award, classification and hours worked, then compare it against your payslip.

This guide is general information only — not legal advice. Award rates and conditions change; always confirm your current, exact entitlements using the Fair Work Ombudsman’s P.A.C.T. tool or by speaking with Fair Work directly.

Sources:
Fair Work Ombudsman — Pay under the Building and Construction Award
Fair Work Ombudsman — Building and Construction General On-site Award 2020 [MA000020]
Fair Work Ombudsman — Penalty rates