Yes — but only in narrow, recently added circumstances, and most well-paid professionals are exempt. The Professional Employees Award 2020 (MA000065) had no overtime or penalty rates at all until a Fair Work variation took effect on 16 September 2023. Since then, covered engineers, scientists and IT professionals can be paid for overtime and out-of-hours work — but the entitlement switches off for anyone paid 25% or more above their minimum classification rate. This guide explains who the award covers, how its unusual flat-rate overtime works, the FY2026/27 minimum salaries, and the 25% rule that decides whether overtime applies at all. It is general information for Australian employers, not legal advice.
Quick summary
- Who's covered:
Professional engineers, scientists, IT and telecommunications professionals, medical researchers and quality auditors — including software engineers
- Overtime since 2023:
Paid at the flat minimum classification hourly rate (not time-and-a-half) for directed, recorded hours beyond ordinary time
- Penalties:
125% before 6am / after 10pm Monday–Saturday; 150% on Sundays and public holidays
- The 25% exemption:
Paid 25%+ above the minimum classification rate? No award overtime, penalties or TOIL apply
Who the Professional Employees Award covers
The Professional Employees Award (MA000065) covers employees doing professional-level engineering, scientific, information technology and telecommunications, medical-research and quality-auditing work. In practice that means:
- Professional engineers across all disciplines, graduate to principal
- Professional scientists (chemistry, physics, metallurgy, food science and similar)
- Information technology and telecommunications professionals — including software engineers and developers
- Medical-research employees at research institutes
- Quality auditors and senior quality auditors
Coverage turns on the actual duties, not the job title. Importantly, an IT professional qualifies through either a relevant degree or by being an ACS (Australian Computer Society) Certified Professional — which is the clear answer to the common question of whether software engineers are covered. They usually are.
The two big coverage traps
The award excludes employees whose role is wholly or principally managerial — but supervising others while still doing professional work keeps you covered. It also excludes staff doing mainly clerical or administrative work, who instead fall under the Clerks – Private Sector Award. Many professionals are also award-free on common-law contracts or covered by an enterprise agreement instead.
How overtime and penalties actually work
This is the part that makes the award unusual. For most of its life it carried no overtime and no penalty rates. That changed with the Fair Work variation that took effect on 16 September 2023, which introduced payment for additional hours and out-of-hours work.
- Overtime is paid at the flat minimum classification hourly rate — not time-and-a-half. When an employer directs additional hours beyond ordinary hours, and those hours are recorded, they must be paid (or taken as time off in lieu). This is very different from the 150%/200% overtime in most awards.
- Penalty rates for unsociable hours: work before 6am or after 10pm, Monday to Saturday, is paid at 125%; work on Sundays and public holidays is paid at 150%.
- There is still no ordinary Saturday-daytime loading and no standard shift schedule — daytime Saturday work is paid at the ordinary rate.
Because overtime is only the flat rate, the design assumes a professional salary already compensates for reasonable additional hours. The trigger is the employer directing and recording the extra time. Getting this right depends on capturing accurate hours — award interpretation applies the correct rate to each shift automatically.
The 25% exemption: overtime switches off
The single most important rule: an employee paid at least 25% above their minimum classification rate is not entitled to the award’s overtime, penalty-rate or time-off-in-lieu provisions. In practice most experienced professionals on market salaries sit above this threshold and get no award overtime or penalties at all — though you must still pay at least the minimum salary. Below-threshold staff (typically graduates and early-career professionals) do get the overtime and penalties above. Check every covered employee against 125% of their minimum rate — the free professional employees 25% exemption calculator does the maths for you.
FY2026/27 minimum pay rates
The award sets minimum annual salaries, with the hourly figures derived from them over a 38-hour week. These minimums take effect from the first full pay period on or after 1 July 2026. They are the floor — market salaries for experienced professionals usually sit well above. For the full rate breakdown, casual loadings and a live calculator, see our Professional Employees Award pay guide, and always confirm against the current Fair Work pay guide.
Professional Employees Award minimum rates, FY2026/27 (38-hour week)
| Classification | Hourly rate | Weekly (indicative) |
|---|---|---|
| Level 1 – Graduate (3-year degree) | $33.71 | $1,280.98 |
| Level 1 – Graduate (4–5-year degree) | $34.58 | — |
| Level 1 – Pay point 2 | $35.15 | — |
| Level 1 – Pay point 3 | $36.62 | — |
| Level 1 – Pay point 4 | $38.47 | — |
| Level 2 – Experienced professional | $39.77 | — |
| Level 3 – Senior professional | $43.46 | — |
| Level 4 – Principal professional | $49.02 | — |
Rates are indicative FY2026/27 minimums effective the first full pay period on or after 1 July 2026. Confirm current figures on the Fair Work pay guide. Casuals receive a 25% loading on top of these ordinary rates.
What this means for employers
If you employ professionals covered by MA000065, four things keep you compliant:
- Confirm coverage and classification. Covered professional work vs an industry award vs award-free, then the right Level 1 pay point through Level 4.
- Check the 25% threshold for each person. It decides whether any overtime or penalties apply — pay them to below-threshold staff, and don’t assume above-threshold staff are owed them.
- Record directed additional hours. Overtime only bites where extra hours are directed and recorded, so accurate time and attendance data matters.
- Automate the rules. Mispricing early/late, Sunday and public-holiday work is a common source of both overspend and underpayment. It’s worth checking your underpayment risk and following our guide on how to calculate overtime costs.
Apply the Professional Employees Award without the guesswork. RosterElf reads each shift’s times, applies the award’s flat-rate overtime plus early/late, Sunday and public-holiday penalties for below-threshold staff, shows live labour cost as you roster, and sends accurate hours straight to payroll.
Frequently asked questions
Do professional employees get overtime in Australia?
Only since 16 September 2023, and only in limited circumstances. Before that variation the Professional Employees Award (MA000065) had no overtime or penalty rates. Now, covered employees who are paid below the 25% threshold can be paid overtime for directed, recorded additional hours — but at the flat minimum classification hourly rate, not time-and-a-half. Employees paid 25% or more above their minimum rate get no award overtime at all.
Does the Professional Employees Award cover IT and software engineers?
Yes. Information technology and telecommunications professionals are expressly covered, and an IT professional qualifies through either a relevant degree or by being an ACS Certified Professional — so most software engineers and developers are covered. Coverage depends on the actual professional duties, not the job title. Someone doing mainly managerial or clerical work would fall outside the award.
What penalty rates apply under the Professional Employees Award?
For employees paid below the 25% threshold, work before 6am or after 10pm from Monday to Saturday is paid at 125%, and work on Sundays and public holidays is paid at 150%. There is no ordinary Saturday-daytime loading and no standard shift schedule. These penalties were introduced by the September 2023 variation and switch off entirely for staff paid 25% or more above the minimum.
What is the 25% exemption in the Professional Employees Award?
An employee whose salary is at least 25% above their applicable minimum classification rate is not entitled to the award’s overtime, penalty-rate or time-off-in-lieu provisions. Most experienced professionals on market salaries sit above this threshold, so they receive no award overtime or penalties — but the employer must still pay at least the minimum salary. Below-threshold employees, often graduates, do receive them.
What is the minimum salary for a professional employee?
For FY2026/27, minimum rates run from about $33.71/hr (Level 1 graduate with a 3-year degree, roughly $1,280.98/week) to $49.02/hr (Level 4 principal professional). Level 2 experienced professionals are about $39.77/hr and Level 3 senior professionals about $43.46/hr. These are award minimums effective from the first full pay period on or after 1 July 2026 — market salaries are usually higher. Confirm on the Fair Work pay guide.
Are managers covered by the Professional Employees Award?
No — employees whose role is wholly or principally managerial are excluded and are often award-free. However, a professional who supervises others while still performing professional work stays covered. The distinction turns on the actual duties: leading a team as part of professional engineering, science or IT work is different from a purely managerial role.
Is administrative or clerical work covered by this award?
No. Employees doing mainly clerical or administrative work are not covered by the Professional Employees Award — they generally fall under the Clerks – Private Sector Award instead. The Professional Employees Award is for professional-level engineering, scientific, IT, medical-research and quality-auditing duties.
How much does a Level 1 graduate professional earn?
Under the Professional Employees Award the FY2026/27 minimum for a Level 1 graduate is about $33.71/hr with a 3-year degree (roughly $1,280.98/week) or $34.58/hr with a 4–5-year degree, rising through pay points to about $38.47/hr as early-career experience grows. Graduates are the group most likely to sit below the 25% threshold, so their out-of-hours work does attract overtime and penalties.
