SCHADS Award Penalty Rates Explained - Saturday, Sunday, Night & Public Holiday Pay

The short answer

These are the loadings in the SCHADS Award (MA000100) for ordinary hours. The clause numbers are the Award's own, and each rule is quoted word for word further down this page.

How the penalty rates work, one by one

Saturday and Sunday

Weekend rates are set by clause 26.1:

"Employees whose ordinary working hours include work on a Saturday and/or Sunday will be paid for ordinary hours worked between midnight on Friday and midnight on Saturday at 150% of the ordinary rate of pay, and for ordinary hours worked between midnight on Saturday and midnight on Sunday at 200% of the ordinary rate of pay."

Worked example (illustrative, using an ordinary rate of $30.00 an hour): a 6-hour Saturday shift is 6 × $30.00 × 1.5 = $270.00. A 4-hour Sunday shift is 4 × $30.00 × 2 = $240.00. The same 4 hours on an ordinary weekday would cost $120.00.

A shift that crosses midnight is paid by the clock: hours before midnight on Saturday are at the Saturday rate and hours after midnight are at the Sunday rate.

Afternoon shifts

The Award does not apply the afternoon loading to the hours after a particular time. It decides whether the shift is an afternoon shift, and then applies the loading to the whole shift. Clause 29.2(a) defines it:

"Afternoon shift means any shift which finishes after 8.00 pm and at or before 12 midnight Monday to Friday."

and clause 29.3(a) sets the loading:

"An employee who works an afternoon shift will be paid a loading of 12.5% of their ordinary rate of pay for the whole of such shift."

Worked example (illustrative, $30.00 an hour): a weekday shift from 2.00 pm to 10.00 pm finishes after 8.00 pm and before midnight, so it is an afternoon shift. All 8 hours carry the 12.5% loading: 8 × $30.00 × 1.125 = $270.00, compared with $240.00 for the same hours on a shift that finished at 8.00 pm.

Night shifts

Night shifts work the same way. Clause 29.2(b) defines them:

"Night shift means any shift which finishes after 12 midnight or commences before 6.00 am Monday to Friday."

and clause 29.3(b) sets the loading:

"An employee who works a night shift will be paid a loading of 15% of their ordinary rate of pay for the whole of such shift."

Worked example (illustrative, $30.00 an hour): a Tuesday shift from 10.00 pm to 6.00 am finishes after midnight, so it is a night shift. All 8 hours carry the 15% loading: 8 × $30.00 × 1.15 = $276.00.

The ordinary span of hours for a day worker is 6.00 am to 8.00 pm, Monday to Sunday (clause 25.2(a)) - this span itself is not limited to weekdays. The afternoon and night shift loadings above are a separate, narrower rule: clause 29.2 defines them only for a shift finishing after 8.00 pm or commencing before 6.00 am on a Monday to Friday. A Saturday or Sunday shift falls under the weekend penalties in clause 26 instead.

Public holidays

Clause 34.2 covers working on a public holiday:

"(a) An employee required to work on a public holiday will be paid double time and a half of their ordinary rate of pay for all time worked.

(b) Payments under this clause are instead of any additional rate for shift or weekend work which would otherwise be payable had the shift not been a public holiday.

(c) A casual employee will be paid the casual loading in clause 10.4 in addition to the public holiday penalty rate in clause 34.2(a).

(d) A casual employee will be paid 275% of the ordinary rate of pay for hours worked on public holidays (inclusive of the casual loading)."

Clause 29.2(c) defines a public holiday shift as "any time worked between midnight on the night prior to the public holiday and midnight of the public holiday". Which days are public holidays depends on the state or territory where the employee works.

Worked example (illustrative, $30.00 an hour): 6 hours on a public holiday is 6 × $30.00 × 2.5 = $450.00. For a casual employee, clause 34.2(d) states the combined rate directly as 275% (inclusive of the casual loading), rather than requiring the 250% and the 25% loading to be added separately: 6 × $30.00 × 2.75 = $495.00.

Casual employees

Clause 10.4 says that a casual employee is paid the ordinary hourly rate plus a loading: "In addition, a loading of 25% of that rate will be paid." For weekends, clause 26.4 states the combined rates:

"A casual employee who works on a weekend will be paid at the following rates: (a) between midnight Friday and midnight Saturday – 175% of the ordinary rate of pay (inclusive of the casual loading); and (b) between midnight Saturday and midnight Sunday – 225% of the ordinary rate of pay (inclusive of the casual loading)."

See also: SCHADS casual loading explained.

Do penalty rates stack?

Mostly no, and the Award says so in several places. Weekend rates replace the shift loadings (clause 26.2), overtime rates replace both shift loadings and weekend rates (clause 28.1(a)(v)), and the public holiday rate replaces any shift or weekend rate that would otherwise apply (clause 34.2(b)). For example, clause 26.2 reads:

"The rates in clause 26.1 are in substitution for and not cumulative upon the shift premiums prescribed in clause 29—Shiftwork and are not applicable to overtime worked on a Saturday and Sunday."

The casual loading is the exception: it is paid in addition to the public holiday rate (clause 34.2(c)) and is built into the casual weekend rates (clause 26.4).

Overtime

Overtime depends on whether the employee is full-time, or part-time or casual, and on the stream they work in. Clause 28.1(a) covers full-time employees. These are the parts that apply to disability services and home care employees:

"A full-time employee will be paid the following payments for all work done in addition to their rostered ordinary hours either on any day or on any shift and, in the case of day workers, for work done outside the span of hours under clause 25.2(a):

(i) disability services, home care and day care employees—for all authorised overtime on Monday to Saturday, payment will be made at the rate of time and a half for the first 2 hours and double time thereafter;

(iii) for all authorised overtime on a Sunday, payment will be made at the rate of double time;

(iv) for all authorised overtime on a public holiday, payment will be made at the rate of double time and a half; and

(v) overtime rates under this clause will be in substitution for, and not cumulative upon, the shift premiums prescribed in clause 29—Shiftwork, and Saturday and Sunday work premiums prescribed in clause 26—Saturday and Sunday work."

For social and community services and crisis accommodation employees, clause 28.1(a)(ii) provides time and a half for the first 3 hours (not 2) on Monday to Saturday, and double time after that.

For part-time and casual employees, clause 28.1(b)(i) and (ii) set two triggers:

"(i) All time worked by part-time or casual employees in excess of 38 hours per week or 76 hours per fortnight will be paid for at the rate of time and a half for the first 2 hours and double time thereafter, except that on Sundays such overtime will be paid for at the rate of double time and on public holidays at the rate of double time and a half.

(ii) All time worked by part-time or casual employees which exceeds 10 hours either per day or per shift, will be paid at the rate of time and a half for the first 2 hours and double time thereafter, except on Sundays when overtime will be paid for at the rate of double time, and on public holidays at the rate of double time and a half."

Clause 28.1(b)(iii) and (iv) provide a different daily threshold (12 hours) where an employee and employer have agreed a 12-hour shift split around a sleepover. Read the clause in full before applying it.

Worked example (illustrative, $30.00 an hour): a full-time disability services employee works 3 hours of authorised overtime on a Wednesday. The first 2 hours are paid at time and a half and the third at double time: (2 × $30.00 × 1.5) + (1 × $30.00 × 2) = $90.00 + $60.00 = $150.00.

More detail: SCHADS overtime rules.

Breaks

The Award's break rules are in clause 27:

"27.1 (a) Each employee who works in excess of five hours will be entitled to an unpaid meal break of not less than 30 minutes and not more than 60 minutes duration, to be taken at a mutually agreed time after commencing work.

(b) Where an employee is required to work during a meal break and continuously thereafter, they will be paid overtime for all time worked until the meal break is taken."

"27.2 (a) Every employee will be entitled to a paid 10 minute tea break in each four hours worked at a time to be agreed between the employer and employee."

Read more: meal break compliance under the SCHADS Award.

What this means for your NDIS pricing and rostering

Weekend, afternoon, night and public holiday hours cost more to deliver, and the amount depends on the shape of the shift: a shift that finishes at 8.15 pm carries the afternoon loading for every hour, but one that finishes at 8.00 pm does not. Before you agree rates in a service agreement, check your labour cost for each type of shift against the NDIS price limits that apply to the same support, including weekend and evening supports. Those limits are set by the NDIA, not by the Award.

Related guides: SCHADS pay rates, SCHADS allowances, sleepover allowance and broken shift allowance.

Where mistakes happen in manual payroll

Many providers work out penalty rates in spreadsheets, shift by shift. The points where this goes wrong most often are the ones above:

• Treating the afternoon or night loading as applying to some hours of a shift, when the Award applies it to the whole of the shift
• Adding a shift loading on top of a weekend or public holiday rate, when the Award says the higher rate replaces it
• Missing that a shift crosses midnight into a different day
• Applying the wrong overtime tier for the employee's stream or employment type
• Using the wrong public holidays for the state where the employee works

Frequently asked questions

What time does the afternoon penalty start under the SCHADS Award?

It is not a clock time. A weekday shift is an afternoon shift if it finishes after 8.00 pm and at or before midnight (clause 29.2(a)). If it is, the 12.5% loading applies to the whole shift (clause 29.3(a)).

What is the Saturday rate under the SCHADS Award?

150% of the ordinary rate for ordinary hours worked between midnight on Friday and midnight on Saturday (clause 26.1). For a casual employee the Award states 175%, which includes the casual loading (clause 26.4).

What is the Sunday rate under the SCHADS Award?

200% of the ordinary rate (clause 26.1). For a casual employee the Award states 225%, which includes the casual loading (clause 26.4).

What is the public holiday rate?

Double time and a half (250%) of the ordinary rate for all time worked (clause 34.2(a)). A casual employee is also paid the 25% casual loading (clause 34.2(c)).

Do night shift and Sunday penalties add together?

No. The weekend rates replace the shift premiums (clause 26.2), so a Sunday shift is paid at the Sunday rate, not the Sunday rate plus a night loading.

Is overtime paid at double time?

Not always. For a full-time disability services or home care employee, authorised overtime Monday to Saturday is time and a half for the first 2 hours and double time after that. It is double time on a Sunday and double time and a half on a public holiday (clause 28.1(a)).