Overtime and Penalty rates Overtime is the time worked in excess of the standard working day or week. Penalty rates may be paid when for dangerous situations, overtime, weekend or public holidays (depending on the award).

The two most common rates of overtime pay are:• Time-and-a-half = • Double-time =

1.5 × normal hourly rate2 × normal hourly rate

1304 × 7 = 127 × 3 =

9128 + 381 =Or 1304 × 7 + 127 × 3 =

Amy earns $1304 per hour and an additional $127 per hour if she is working in confined spaces. How much does Amy earn if she works for 7 hours, three of which were in a confined space?

Example 1

= 9128= 381= $9509

= $9509

a) 8 × 1126 = 1 × (1126 × 1½) =

9008 + 1689 =

Or (8 × 1126) + (2 × 1126 × 1½) + (1 × 1126 × 2) =

Example 2Lauren gets paid $1126 per hour for the first 8 hours worked, then “time and a half” for the next 2 hours and “double” time for any other hours worked. How much does she get paid if she works:a) 9 hours in a day b) 11 hours in a day

= 9008 = 3378= 2252 = $14638

= 9008 = 1689= $10697

Or (8 × 1126) + (1 × 1126 × 1½) == $10697

= $ 14638

b) 8 × 1126 = 2 × (1126 × 1½) =

1 × (1126 × 2)= 9008 + 33.78 + 2252 =

Bonus and leave loadingA bonus is paid in addition to normal income, eg for reaching a target.

Annual leave loading is normally paid at the rate of 17½% on 4 weeks normal pay.

Awards with more than 4 weeks holidays still only get 4 weeks loading. The leave can often be taken at any time during the year.

Holiday pay (or annual leave loading) first started with miners who lost money by going on holidays as they did not get their underground allowances paid during holiday periods.

Today most full time awards have holiday pay.

Rhiannon earns a salary of $65 000. a) What is her weekly pay rate?b) How much loading does she get for a 4 week holiday?c) How much pay does she get for a 4 week holiday?

a) $65 000 ÷ 52 = $1250

$875

c) (1250 × 4) + 875 = $5 875

Example 3

b) 0175 × 1250 × 4 =

Example 4

42 000 ÷ 52 = 80769 × 0175 = 80769 + 14135 =

3 × 94904 =Or

42 000 ÷ 52 = 3 × 80769 × 1175

=

Karen earns $42 000 p.a. If she takes 3 weeks holiday leave, how much does she get paid?

Note that the 2 amounts are different. WHY?This is because in step 2 of the first method, the answer was rounded off to 2DP, whereas in the second method the unrounded number was used.

807691413594904$284712

80769$284711

Megan received $620 in annual leave loading last year.a) What was her weekly pay rate?b) If she worked a 35 hour week, what was her hourly pay rate?

a) 620 ÷ 4 = $155 Leave loading each week

17½% = 155 ÷ 17½

1% = 8·85714 ×100

100% = 885·71

Megan’s weekly pay rate was $885·71

b) 885·71 ÷ 35 =$25·31

Example 5

Today’s work

Yesterday’s work

Exercise 9:02P298→299Q1a,b,c + fQ2a,b,e,f,hQ3