changes to casual employee rates - effective 20 November 2020

With effect from 20 November 2020, most Modern Awards will change regarding how casuals are paid overtime. Please note: The Aged Care Award will change on 1 March 2021.

There are three ways to calculate overtime and it will depend on the Award. Please ensure you check your relevant Award(s) to ensure compliance with the changes:

Ordinary time (base rate) is calculated at 100%, casual loading at 25% and overtime is calculated at 150%.

 The Cumulative Method

Overtime and the casual loading are applied to the ordinary time base rate.

For example: base rate x overtime penalty and casual loading – 100% x 175%

The Substitution Method

Overtime is calculated on the base rate and excludes the casual loading.

For example: base rate x overtime penalty – 100% x 150%

The Compounding Method

Overtime is calculated on the casual loaded rate of pay.

For example:  casual loaded rate x overtime penalty – 125% x 150%

For further details: https://www.fairwork.gov.au/employee-entitlements/hours-of-work-breaks-and-rosters/hours-of-work/when-overtime-applies

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