Australian modern awards each define their own overtime thresholds—the point at which ordinary hours end and overtime rates begin. Getting these thresholds wrong leads to underpayment claims that can extend years into the past. The challenge is that different awards use different triggers: some have daily overtime (e.g., after 10 hours in a day), others have weekly overtime (after 38 hours), and many use both.
This guide breaks down overtime thresholds for popular Australian modern awards including hospitality, retail, fast food, healthcare, and SCHADS. Understanding when overtime kicks in under your specific award is essential for correct award interpretation and Fair Work compliance.
Quick summary
- Most awards trigger overtime after 38 ordinary hours per week
- Daily overtime thresholds vary: 8, 10, or 12 hours depending on the award
- Overtime rates are typically 150% then 200% of the ordinary rate
- Missing daily thresholds is one of the most common underpayment causes
How overtime thresholds work under Australian awards
Overtime under Australian modern awards is triggered when employees work beyond their ordinary hours. These thresholds are defined in each award and can include:
Weekly thresholds
Hours exceeding 38 per week (or the agreed part-time hours) trigger weekly overtime. This applies regardless of how the hours are distributed across shifts.
Daily thresholds
Hours exceeding the daily maximum (often 8, 10, or 12 hours) trigger daily overtime. This applies even if the employee hasn't reached 38 hours for the week.
When both daily and weekly thresholds apply, an employee might trigger overtime in multiple ways during a single pay period. The key is to apply whichever threshold is reached first for each day or pay cycle.
Overtime thresholds by modern award
Here are the overtime thresholds for popular Australian modern awards. For complete rate tables including base rates and penalty rates, see our award rate guides:
Hospitality industry general Award (MA000009)
Daily overtime threshold:
After 10 hours per day (excluding unpaid meal breaks) for full-time employees. After 11.5 hours including breaks in some cases.
Weekly overtime threshold:
After 38 ordinary hours per week, or after agreed hours for part-time employees.
Overtime rates:
150% for the first 2 hours, 200% thereafter. Overtime on Sunday is 200% from the first hour.
General retail industry Award (MA000004)
Daily overtime threshold:
After 9 hours per day (or 11 hours by agreement for 4-day weeks). Casual employees trigger overtime after 11 hours.
Weekly overtime threshold:
After 38 ordinary hours per week, or agreed part-time hours.
Overtime rates:
150% for the first 3 hours, 200% thereafter. Sunday overtime is 200% from the first hour.
Fast food industry Award (MA000003)
Daily overtime threshold:
After 9 hours per day (excluding unpaid breaks). After 10 hours for shift workers rostered on 4 days per week.
Weekly overtime threshold:
After 38 ordinary hours per week for full-time employees.
Overtime rates:
150% for the first 2 hours, 200% thereafter on Monday to Saturday. Sunday overtime is 200%.
Restaurant industry Award (MA000119)
Daily overtime threshold:
After 10 hours per day (excluding unpaid breaks) for full-time employees. After 11.5 hours including breaks in some circumstances.
Weekly overtime threshold:
After 38 ordinary hours per week, averaged over a roster cycle where applicable.
Overtime rates:
150% for the first 2 hours, 200% thereafter. Sunday overtime attracts 200%.
SCHADS Award (MA000100)
Daily overtime threshold:
After 10 hours per day for shift workers; after 8 hours for day workers (unless span of hours extended by agreement). Complex broken shift provisions apply.
Weekly overtime threshold:
After 38 ordinary hours per week, or agreed part-time hours. May be averaged over a roster cycle.
Overtime rates:
150% for the first 2 hours, 200% thereafter on Monday to Saturday. Sunday overtime is 200%. Public holiday overtime is 250%.
Health professionals Award (MA000027)
Daily overtime threshold:
After 10 hours per day for shift workers; after 8 hours for day workers. Extended shifts may apply by agreement for specific circumstances.
Weekly overtime threshold:
After 38 ordinary hours per week, with averaging permitted over roster cycles.
Overtime rates:
150% for the first 2 hours on any day, 200% thereafter. Sunday overtime attracts 200%.
Important: These summaries provide general guidance only. Awards contain detailed provisions, exceptions, and conditions that may affect overtime thresholds for specific situations. Always refer to the full award text or seek professional advice for your specific circumstances.
Daily overtime vs weekly overtime: what's the difference?
Understanding the difference between daily and weekly overtime is critical for correct pay calculations:
| Aspect | Daily overtime | Weekly overtime |
|---|---|---|
| When it triggers | After exceeding daily hours threshold (e.g., 10 hours) | After exceeding 38 hours in a week |
| Assessment period | Each individual shift/day | Weekly pay period (or roster cycle) |
| Example trigger | Working an 11-hour shift (overtime from hour 11) | Working 45 hours Mon–Fri (overtime for 7 hours) |
| Common mistake | Not tracking hours within each shift | Only counting weekly hours, missing daily triggers |
Example: hospitality employee
Consider a full-time hospitality worker under the Hospitality Award (10-hour daily threshold, 38-hour weekly threshold):
- Monday: 8 hours (ordinary)
- Tuesday: 8 hours (ordinary)
- Wednesday: 12 hours (10 ordinary + 2 overtime)
- Thursday: 8 hours (ordinary)
- Friday: 6 hours (only 4 ordinary, 2 already overtime from Wednesday's daily trigger)
Total: 42 hours. The 2 hours on Wednesday after the 10-hour mark triggered daily overtime immediately—they didn't need to wait until the employee reached 38 hours for the week. This is why tracking both thresholds is essential.
Common overtime threshold mistakes
These overtime calculation errors cause underpayments:
Ignoring daily thresholds
Only calculating weekly overtime and missing daily triggers. An employee working 4 x 12-hour days (48 hours total) should receive daily overtime from hour 11 on each day, not just 10 hours of weekly overtime.
Wrong threshold for award
Using 8-hour daily thresholds when the award specifies 10 hours, or vice versa. Each award has specific thresholds—assuming they're all the same creates systematic errors.
Not counting casual hours
Assuming casuals don't get overtime. Casual employees receive overtime when exceeding thresholds, calculated on their loaded rate. Missing this significantly underpays casuals on long shifts.
Incorrect break calculations
Including or excluding breaks incorrectly when calculating daily thresholds. Most awards exclude unpaid meal breaks from the calculation, but paid rest breaks usually count toward hours worked.
How award interpretation software handles overtime
Modern award interpretation software automatically tracks overtime thresholds:
Award-specific rules
Built-in thresholds for each modern award. Select the relevant award, and the system applies correct daily and weekly overtime triggers automatically.
Real-time tracking
As employees clock in and out, the system tracks hours against both daily and weekly thresholds. Overtime triggers automatically when thresholds are exceeded.
Correct rate application
Applies 150% for initial overtime hours and 200% for subsequent hours based on award rules. Handles casual loading calculations correctly.
Cost forecasting
See projected overtime costs before publishing rosters. Understand how shift lengths affect labour costs including overtime premiums.
Payroll integration
Export timesheet data with overtime hours correctly categorised to Xero or MYOB. Eliminates manual overtime calculations.
Compliance alerts
Warns when rostered shifts will trigger overtime, helping managers make informed decisions about scheduling and labour costs.
Frequently asked questions
When does overtime start under Australian modern awards?
Overtime thresholds vary by award. Most awards trigger overtime after 38 ordinary hours per week, but many also have daily thresholds (commonly after 8, 10, or 12 hours per day). Some awards only have weekly thresholds, while others use both daily and weekly triggers. Check our award rate guides for exact thresholds.
What is the difference between daily and weekly overtime?
Daily overtime triggers when an employee exceeds hours in a single day (e.g., after 10 hours). Weekly overtime triggers when total hours exceed the weekly threshold (typically 38 hours). Many awards use both—an employee could trigger daily overtime on a long shift even if they haven't reached 38 hours for the week.
Does the hospitality Award have daily overtime?
Yes, the Hospitality Industry General Award (MA000009) has both daily and weekly overtime thresholds. Full-time employees trigger overtime after 10 hours in a day (excluding unpaid breaks). Weekly overtime applies after 38 ordinary hours. Part-time employees may have different arrangements based on their agreed hours.
What are the overtime rates under Australian awards?
Most awards pay overtime at 150% (time and a half) for the first 2–3 overtime hours, then 200% (double time) thereafter. Some awards have different structures. For example, overtime on Sundays may already be at double time. The specific rates depend on your modern award and when the overtime hours are worked.
Do casual employees get overtime?
Yes, casual employees are entitled to overtime when they exceed the relevant thresholds. Overtime rates are calculated on top of the casual loading. For example, if the base rate is $25 plus 25% casual loading ($31.25), overtime at 150% would be $46.88 per hour. This makes casual overtime significantly more expensive.
How does the SCHADS Award handle overtime?
The SCHADS Award (MA000100) has specific overtime provisions for disability and community services. Daily overtime generally applies after 10 hours (or 8 hours for day workers). The award also has complex provisions for broken shifts and sleepover work that interact with overtime calculations.
Related RosterElf features
Automatic overtime calculations under Australian awards
RosterElf tracks daily and weekly overtime thresholds automatically, so you never miss an overtime trigger or underpay employees.
- Award-specific daily and weekly thresholds
- Automatic overtime rate calculations (150% / 200%)
- Direct integration with Xero and MYOB payroll
Disclaimer: This article provides general guidance only and does not constitute legal advice. Award provisions and overtime thresholds are subject to change. Always verify current requirements using official Fair Work Ombudsman resources and seek professional legal advice for your specific circumstances.
