Is your professional employee exempt from overtime?
Under the Professional Employees Award, staff paid at least 25% above their minimum classification rate lose the award's overtime, penalty-rate and time-off-in-lieu entitlements. Pick a classification and enter the salary to see which side of the threshold your employee sits.
This calculator provides general estimates only, based on the Professional Employees Award 2020 (MA000065) minimum rates for FY2026/27. It does not account for enterprise agreements, allowances or individual circumstances and is not legal or payroll advice. Always confirm coverage and rates with Fair Work before making pay decisions. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
25% exemption calculator
Choose the employee's classification, then enter their actual annual salary (excluding superannuation).
Exemption result
Estimates only — verify before making decisions.
How the 25% exemption works
The Professional Employees Award 2020 (MA000065) covers professional engineers, scientists, IT and telecommunications professionals, medical researchers and quality auditors. Since the September 2023 variation, covered employees can be paid for overtime and out-of-hours work — but only if they are paid below a threshold set at 25% above their minimum classification rate.
An employee paid at or above that threshold is not entitled to the award’s overtime, penalty-rate or time-off-in-lieu provisions. Graduates and early-career professionals are the group most likely to sit below it, so their directed additional hours and unsociable-hours work do attract overtime and penalties.
How to read your result
The calculator compares the actual annual salary against 125% of the award minimum for the chosen classification:
- “Extra pay needed to reach the threshold” is $0 — the employee is at or above the threshold and is exempt: no award overtime, penalty rates or TOIL.
- “Extra pay needed” is above $0 — the employee sits below the threshold, so directed, recorded additional hours are paid at the flat minimum classification hourly rate, and unsociable-hours penalties (125% before 6am / after 10pm Mon–Sat; 150% Sundays and public holidays) apply.
“Your salary above the award minimum” needs to reach 25% for the exemption to bite.
What the exemption switches off
For employees paid 25% or more above their minimum classification rate, these award provisions do not apply.
Overtime
No payment for directed additional hours — even the award’s flat-rate overtime stops applying.
Penalty rates
No 125% loading for work before 6am or after 10pm Mon–Sat, and no 150% for Sundays or public holidays.
Time off in lieu
No entitlement to TOIL for additional hours worked outside the ordinary span.
Worked examples (FY2026/27)
How the threshold plays out for common classifications. Minimums are the award weekly rate × 52.
Graduate (3-yr) · $70,000
Minimum $66,611, threshold $83,264. Below the threshold — overtime and penalties apply.
Level 2 · $85,000
Minimum $78,586, threshold $98,232. Below the threshold — overtime and penalties apply.
Level 4 · $130,000
Minimum $96,864, threshold $121,079. Above the threshold — exempt from overtime and penalties.
Managing professional and technical staff?
Upgrade to RosterElf to record hours, apply the right award rates and keep overtime compliant.
Free calculator
Great for checking the 25% threshold
- 25% exemption check
- FY2026/27 minimum rates
- Instant result
- No signup required
- Automatic award interpretation
- Time & attendance tracking
- Overtime & additional-hours records
- Payroll integration
Full Suite
Rostering, payroll & HR in one
per employee per month
+ GST, billed annually
Payroll & HR tools in one system
- Smart rostering & availability
- Time & attendance (GPS & photo)
- Award interpretation & penalties
- Payroll export (Xero & MYOB)
- HR Hub with employee profiles
- Digital onboarding & contracts
- Policies, certificates & compliance tracking
- Payroll sync with employee records
- Workwise AI compliance assistant
- Central document storage & management
- Leave management with approvals
No credit card required · 15-day free trial
Related resources
Explore guides, insights, and templates to help you get more from this tool.
Professional Employees Award pay guide
FY2026/27 minimum salaries, overtime and the 25% exemption explained.
How to calculate penalty rates
Work out weekend, evening and public-holiday penalties correctly.
Conduct a payroll audit
Check classifications, rates and overtime across your payroll.
Explore more free tools
Discover other calculators and AI tools to help manage your workforce.
AI employment contract generator
Generate draft employment contracts for casual, part-time, or full-time employees using AI.
AI roster generator
Generate draft staff rosters using AI based on your team size and shift requirements.
Modern award pay rate estimates
Get indicative pay rate estimates for common Australian awards. Verify with Fair Work.
Free roster builder
Build staff rosters instantly with our free drag-and-drop tool. No signup required.
Casual vs part-time calculator
Compare the estimated cost of casual vs part-time employment including loadings.
Payroll cost calculator
Estimate employee costs including super, leave, and casual loading.
Free invoice generator
Create and download professional tax invoices with GST and ABN details — no signup required.
Overtime & penalty rate calculator
Estimate shift costs including weekend, public holiday, and overtime rates.
Frequently asked questions
-
An employee whose annual 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. Below that threshold, directed additional hours and unsociable-hours work attract payment — see the Professional Employees Award guide.
-
Take the minimum classification rate for the employee’s level, then multiply by 1.25. This calculator does it for you: the weekly minimum × 52 gives the annual minimum, and × 1.25 gives the exemption threshold.
-
The comparison is against the award’s minimum salary, which is expressed exclusive of superannuation, so enter the employee’s actual annual salary excluding super. Always confirm your interpretation with Fair Work.