Overtime Rules for Construction Workers in Australia

Most construction workers covered by the Building and Construction General On-site Award receive 150% for the first 2 overtime hours and 200% after that. The exact rule depends on the day, employment type, classification and workplace agreement.

Start by checking which rules cover the worker

There is no single overtime rule for every person who steps onto a building site.

Many on-site workers are covered by the Building and Construction General On-site Award 2020. That can include labourers, carpenters, concreters, doggers, riggers and other civil or general construction employees.

But the job title alone does not decide coverage. Electricians, plumbers, sprinkler fitters, joinery workers, surveyors, drivers and off-site manufacturing workers may come under different awards. Their overtime provisions can differ.

An enterprise agreement, often called an EBA, may apply instead. The worker's contract can also provide a higher rate. It cannot lawfully reduce a minimum award or agreement entitlement.

Western Australia also has a state industrial relations system covering some employers and employees. Check whether the business sits in the national Fair Work system before relying on a federal award.

Our Awards hub explains how award coverage, classifications and pay rules fit together. You can also use the award rate checker to review the likely award and classification.

Construction overtime rates at a glance

The following table shows the main overtime percentages under the Building and Construction General On-site Award, as at October 2026. These are multipliers, not fixed dollar amounts.

When overtime is worked	Full-time or daily hire rate	Casual rate
Monday to Friday, first 2 hours	150%	175%
Monday to Friday, after 2 hours	200%	225%
Saturday, first 2 hours before noon	150%	175%
Saturday, after 2 hours or after noon	200%	225%
Sunday	200%	225%
Public holiday	250%	275%

As at October 2026, the award's standard ordinary-hours benchmark is 38 hours per week. The first 2 weekday overtime hours are paid at 150%, while later hours are paid at 200%. Public holiday work attracts 250% for non-casual employees under this award.

The casual percentages shown above already account for the casual loading. Do not add another 25% unless the applicable award wording or pay guide requires a different calculation.

There is no single national dollar rate for construction overtime. The amount depends on the worker's classification, pay level, employment type and any all-purpose allowances.

When does overtime start?

This is where payroll can come unstuck. Working more than 7.6 hours in one day does not always mean overtime.

A common award arrangement spreads 38 ordinary hours across a 20-day, four-week cycle. An employee may work 8 ordinary hours on 19 days, with 0.4 hours accruing each day towards a rostered day off. Under that arrangement, the eighth hour is not automatically overtime.

Overtime can arise when an employee works:

• beyond the ordinary daily hours set by the award or roster
• more than the ordinary weekly or cycle hours
• outside the permitted spread of ordinary hours
• on a Saturday, Sunday or public holiday where the relevant penalty applies
• during an RDO without a valid change to the roster
• after the end of a shift, including authorised work such as cleaning up or securing equipment

The Building Award generally places day-work ordinary hours between 6:00am and 6:00pm, Monday to Friday. The starting time can sometimes be altered under the award. Shiftworkers have separate provisions, so do not apply the day-work table without checking their roster.

How to calculate the payment

First, find the employee's correct classification and minimum rate. Then identify allowances that are payable for all purposes. An all-purpose allowance normally forms part of the rate used for overtime calculations.

Expense reimbursements and allowances limited to a particular inconvenience are not automatically multiplied. Read the allowance clause rather than treating every allowance the same way.

Here is a simple hypothetical example. Say a full-time employee's applicable all-purpose hourly rate is $32.40. They work 3 overtime hours on Tuesday:

• first 2 hours: $32.40 multiplied by 150%, which is $48.60 an hour
• third hour: $32.40 multiplied by 200%, which is $64.80
• total overtime payment: $162.00

That $32.40 rate is only an example. It is not an award rate. Actual minimum rates vary by classification and can change after Fair Work Commission wage decisions.

If a public holiday, weekend penalty and overtime provision appear to overlap, do not simply add all the percentages together. Awards usually specify which rate applies. Pay the higher or specific entitlement required by the relevant clause.

Rest periods, meals and time off

Under the Building Award, an employee should generally receive a 10-hour break after finishing overtime and before starting ordinary work again. If the employer directs them to return without that break, double time may apply until they are released for the required rest period.

Meal entitlements can also arise when overtime continues beyond the relevant threshold. Whether the employer must provide a meal or pay an allowance can depend on how much notice was given and how long the overtime lasts. Check the current allowance amount rather than copying an old payroll value.

An employee and employer may be able to agree in writing to take time off instead of receiving overtime pay. The time off must represent the overtime value. For example, 2 hours paid at 150% equates to 3 hours off, not 2. Keep the written agreement and follow the award's timing and payout rules.

Common construction payroll traps

Treating every worker as award-free

Paying well above the base rate does not automatically remove award obligations. The employer still needs to identify the award, classification, overtime, allowances and penalties. Any set-off arrangement should be clear and should cover the entitlement in each pay period where required.

Using one rate for the whole site

A site can contain employees covered by several awards or an EBA. Two workers starting at 5:30am may have different entitlements because their duties and industrial coverage differ.

Forgetting pre-start and finish-up work

Compulsory toolbox talks, equipment checks, loading, clean-up and security tasks can be working time. If the employer requires the activity, record it.

Multiplying the wrong base rate

Using only the bare classification rate can cause an underpayment where an all-purpose allowance should be included. The reverse problem also happens when payroll multiplies reimbursements that are not part of the overtime base.

Paying casual loading twice

The casual overtime percentages in the table are expressed as total percentages. Adding 25% again can overpay the worker and make payroll records difficult to reconcile.

Records to keep

As at October 2026, Fair Work time and wage records generally need to be kept for 7 years. They should be accurate, legible and available for inspection.

For construction overtime, keep:

• each worker's award, agreement and classification
• employment type, such as full-time, daily hire or casual
• daily start and finish times
• unpaid meal breaks
• ordinary, overtime and penalty hours
• RDO accruals and roster changes
• all-purpose and expense allowances
• written time-off-in-lieu agreements
• approvals for call-backs or extra work

Payslips generally need to be provided within 1 working day of payday. They should make the payment understandable. If ordinary and overtime hours are blended into one unexplained amount, it becomes much harder to show that the worker received the right entitlement.

The practical approach is simple. Confirm coverage, classify the worker, map the roster, record actual time and apply the rate for that day. If the site has an EBA or several trades, check each group separately.