Time and a half means being paid 1.5 times your normal hourly rate for an hour of work. To work it out, multiply your hourly rate by 1.5. If you earn $40 an hour, time and a half is $60 an hour. Whether it applies to you, and for which hours, depends on your award or agreement. The law doesn't set one rate for everyone.
How do you calculate time and a half?
Multiply your normal hourly rate by 1.5, then multiply that by the hours worked at that rate.
- $30 an hour becomes $45 an hour at time and a half
- $40 an hour becomes $60 an hour
- $55 an hour becomes $82.50 an hour
Four hours at $40 an hour, paid at time and a half, comes to $240.
If you are on a salary, divide your annual salary by 52 to get a weekly figure, then divide by the number of ordinary hours in your week, usually 38. That gives your hourly rate to multiply.
When does time and a half apply in Australia?
The Fair Work Ombudsman says penalty rates are higher rates that employees may be paid for working particular hours or days, including weekends, public holidays, overtime, late nights and early morning shifts. How much you get, and when, depends on the award that applies to you. If you are covered by an enterprise agreement, the penalty rates are in that agreement.
Time and a half is one rate an award can set, and it is often used for overtime. Weekends, public holidays and late nights can each carry a different rate, so check yours before you assume 1.5.
How do you find your exact rate?
Use the Fair Work Ombudsman's penalty rates page, which links to its Pay and Conditions Tool and to downloadable pay guides for each award. Your payslip should show the award or agreement that covers you. If it doesn't, ask your employer.
Do salaried employees get time and a half?
Often not. Many salaried employees are paid a salary that is meant to cover reasonable extra hours. The Fair Work Ombudsman says salaries, employment contracts and similar arrangements need to compensate for the penalties and loadings in the applicable award. Our guide to unpaid overtime for salaried employees covers where the line sits.
What about public holidays?
Public holiday rates are usually higher than time and a half. Our public holiday pay guide shows the rates in the Clerks and Banking awards.
Does your base rate matter more than the multiplier?
Overtime is worked out on your base rate, so a higher base lifts every overtime hour. If you haven't compared your base pay with others in your role lately, the free AusCorp Vault salary check shows where your pay sits against the market.
This is general information, not legal or financial advice.
Sources
- Fair Work Ombudsman, Penalty rates (what penalty rates are, awards and agreements decide the rates)
- Fair Work Ombudsman, Overtime pay (when overtime applies differs under each award and agreement)
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