Ordinary hours vs overtime
In Australian employment, the classification of hours as "ordinary" or "overtime" has significant implications for pay rates, leave accruals, and superannuation. Understanding this distinction is essential for Fair Work compliance.
Ordinary hours
- Up to 38 hours/week (full-time)
- Paid at base rate
- Within spread of hours
- Counts for OTE (super)
Overtime hours
- Beyond ordinary hours
- Paid at 150-200% penalty rates
- May be outside spread of hours
- Generally excluded from OTE
Different Modern Awards define ordinary hours differently. Some trigger overtime only on weekly hours; others also trigger it on daily hours (e.g., beyond 7.6 hours per day).
Maximum ordinary hours in Australia
The Fair Work Act 2009 establishes 38 hours per week as the maximum ordinary hours for full-time employees. This can be arranged in various ways:
- Standard pattern: 7.6 hours per day, 5 days per week
- Compressed week: Longer days with a shorter week (e.g., 4 × 9.5 hours)
- Averaged over cycle: Hours averaged over a roster period (e.g., 76 hours per fortnight)
Ordinary hours by employment type
Spread of ordinary hours
The "spread of hours" defines when ordinary hours can be worked. Hours outside this spread may attract penalty rates even if the employee hasn't exceeded 38 hours per week.
For example, an award might specify:
- Weekdays: Ordinary hours between 6:00am and 6:00pm
- Saturdays: Work attracts penalty rates or is overtime
- Sundays: Higher penalty rates apply
- Early morning/late night: Shift loadings may apply
Award spread of hours
Each Modern Award defines its own spread of ordinary hours. Work outside these times may attract overtime or penalty rates, even if the total hours are under 38. Check your specific award for the applicable spread of hours and penalty rate triggers.
Why ordinary hours matter
For pay calculations
- Base pay: Ordinary hours × base rate
- Overtime trigger: Hours beyond ordinary attract penalties
- Leave accrual: Based on ordinary hours worked
For entitlements
- Superannuation: Calculated on OTE (ordinary hours pay)
- Paid leave: Taken at ordinary hours rate
- Public holidays: Entitlements based on ordinary roster
Common mistakes with ordinary hours
Ignoring daily overtime triggers
Many awards trigger overtime for daily hours beyond 7.6 or 8, not just weekly hours. An employee working 10-hour days may earn overtime even if under 38 hours per week.
Not tracking spread of hours
Hours outside the award's spread may attract penalties even if ordinary hours aren't exceeded. Track when hours are worked, not just how many.
Incorrect part-time ordinary hours
Part-time employees have agreed ordinary hours in their contract. Hours beyond this are overtime—even if under 38 per week.
Including overtime in OTE for super
Overtime payments are generally excluded from ordinary time earnings for super calculations. Mixing them up means incorrect super contributions.
Key takeaways
Ordinary hours are the regular hours an employee works as part of their normal pattern, up to 38 hours per week for full-time employees in Australia. They're distinct from overtime and must fall within the award's spread of hours to be paid at the base rate.
Correctly identifying ordinary hours is essential for calculating pay, overtime, leave accruals, and superannuation. RosterElf's time and attendance system automatically classifies hours based on your award rules, ensuring compliant payroll exports and accurate entitlement calculations.
