Daily vs Weekly Overtime in Australia

The Two Types of Overtime Threshold

In Australia, overtime is generally triggered when an employee works beyond a set threshold of ordinary hours. That threshold can be defined in two different ways under a Modern Award or enterprise agreement:

• Daily threshold: overtime begins once you exceed a certain number of hours in a single shift or day (commonly 8 hours, but sometimes 10 hours under certain award provisions)
• Weekly threshold: overtime begins once you exceed a certain total number of hours in a week (commonly 38 hours for full-time employees under the National Employment Standards)

Some awards use only one of these thresholds. Others use both — meaning overtime can be triggered by a long single shift even if the weekly total is under 38 hours, or by a week of otherwise unremarkable days that adds up to more than 38 hours.

Daily Threshold Explained

Under a daily threshold, overtime is triggered based on hours worked in a single shift. If the threshold is 8 hours and you work 10 hours on a Tuesday, 2 of those hours are overtime — regardless of how many hours you worked on Monday, or how many you will work for the rest of the week.

Daily thresholds are common in industries with variable shift lengths, where employees may frequently work long individual shifts. The threshold can vary by award — 8 hours per day is common, but some awards specify 10 hours or use spans of hours (e.g. ordinary hours must be worked within a certain daily spread).

Key implication: Under a daily threshold, a short week of five 10-hour days would generate overtime on each day, even though the weekly total (50 hours) would also have exceeded the weekly threshold.

Weekly Threshold Explained

Under a weekly threshold, overtime is calculated on the total hours worked across the full week. If the threshold is 38 hours, the first 38 hours are ordinary hours and anything beyond that is overtime — regardless of how those hours were distributed across individual days.

This means that five 8-hour days (40 hours total) would produce 2 hours of overtime for the week under a weekly threshold — even though no individual shift exceeded 8 hours.

Weekly thresholds are also relevant for part-time employees whose contracted hours may be below 38 hours. Under some awards, overtime only begins once the employee exceeds their contracted hours or 38 hours, whichever is applicable. Check your specific award.

When Awards Use Both

Some Modern Awards include both a daily and a weekly threshold. In practice, this means an employee could be entitled to overtime pay for:

• Hours beyond the daily threshold on a given day (e.g. hours 9 and 10 on a 10-hour shift), and
• Hours beyond the weekly threshold for the week as a whole (e.g. the 39th and 40th hour of a 40-hour week)

When both thresholds apply, care must be taken to avoid double-counting overtime hours. The calculation typically identifies which hours attracted overtime pay on a daily basis first, then checks whether the weekly total also triggers further overtime entitlements.

This dual-trigger approach is an area where general estimation tools — including this calculator — may not precisely match award-specific payroll calculations. Check your specific award or use the Fair Work Pay and Conditions Tool for authoritative results.

Worked Examples

Example 1: Daily Threshold Only — One Long Shift

Full-time employee, base rate $30/hr. Award uses a daily threshold of 8 hours. Employee works 11 hours on Wednesday.

Under a weekly threshold only, if this was the only shift of the week (11 hours total), there would be no overtime — since 11 hours is well under 38. The daily threshold is what triggers overtime here.

Example 2: Weekly Threshold Only — Five Ordinary Days Add Up

Full-time employee, base rate $30/hr. Award uses only a weekly threshold of 38 hours. Employee works Mon–Fri, 8 hours each day (40 hours total).

Under a daily threshold only, no overtime would apply here — no individual shift exceeded 8 hours. The weekly threshold is what triggers the 2 hours of overtime.

Example 3: Both Thresholds Apply — Different Outcomes

Full-time employee, base rate $30/hr. Award uses both a daily threshold (8 hours) and a weekly threshold (38 hours). Employee works: Mon 10 hrs, Tue 8 hrs, Wed 8 hrs, Thu 8 hrs, Fri 6 hrs (total: 40 hrs).

See also: Calculation Methodology • How to Check an Overtime Calculation • Worked Examples