Penalty rates are the loading added to your ordinary hourly rate for working evenings, weekends or public holidays. They sit on top of your award's base rate and, for casuals, on top of casual loading too. The multiplier depends on your award and the day, and it typically ranges from 125% to 250% of the base rate.
What counts as a penalty rate
A penalty rate applies to ordinary hours worked outside the standard Monday-to-Friday daytime spread — evenings, Saturdays, Sundays and public holidays. It is separate from overtime, which is extra pay for hours worked beyond your rostered ordinary hours (usually time-and-a-half for the first two hours, then double time). You can be entitled to both at once if a weekend shift also runs into overtime.
Penalty rates are set award by award, not by a single national rule, so two people doing similar work in different industries can be paid very differently for the same Sunday shift.
Penalty rates by award (2026-27)
These are the standard multipliers of the ordinary base rate, current from 1 July 2026. Casual multipliers already include the 25% casual loading, matching how the Fair Work pay guides present them.
General Retail Industry Award (MA000004)
- Evening (after 6pm, Mon-Fri): 125% permanent, 150% casual
- Saturday: 125% permanent, 150% casual
- Sunday: 150% permanent, 175% casual
- Public holiday: 225% permanent, 250% casual
Hospitality Industry (General) Award (MA000009)
- Saturday: 125% permanent, 150% casual
- Sunday: 150% permanent, 175% casual
- Public holiday: 225% permanent, 250% casual
Restaurant Industry Award (MA000119)
- Saturday: 125% permanent, 150% casual
- Sunday: 150% permanent, 150% casual (see the quirk below)
- Public holiday: 225% permanent, 250% casual
Fast Food Industry Award (MA000003)
- Saturday: 125% permanent, 150% casual
- Sunday: 125% permanent, 150% casual at Level 1; 150%/175% at Levels 2-3
- Public holiday: 225% permanent, 250% casual
Run your own award, level and hours through the Award & Fair Work Pay Calculator to see the exact weekly figure, including your take-home pay after tax.
A worked example
A casual Level 1 retail employee earns a base rate of $27.81 an hour. Working 20 ordinary hours plus an 8-hour Sunday shift:
- Ordinary hours: 20 × $27.81 × 1.25 (casual loading) = $695.25
- Sunday hours: 8 × $27.81 × 1.75 (Sunday casual rate) = $389.34
- Total gross for the week: $1,084.59
Without the Sunday penalty, those 8 hours would only add $278.10 at the casual rate — the Sunday loading is worth an extra $111.24 for the shift.
Two quirks worth knowing
Penalty rates are not always a simple "casual loading plus the permanent penalty" sum, and two awards break that pattern:
- Restaurant Industry Award — Sunday. Casual staff are paid 150% on Sundays, the same as Saturday, not the 175% you would expect if the 25% casual loading stacked on top of the 150% permanent Sunday rate. The award does not stack the loading here.
- Fast Food Industry Award — Sunday. The Sunday rate depends on your classification level. Level 1 crew get 125%/150% (permanent/casual); Levels 2 and 3, who are in charge of other staff, get the higher 150%/175%.
These are exactly the kind of details a generic pay calculator misses, because it assumes one flat multiplier applies everywhere.