Penalty rates

Penalty rates are pay rates above a worker's standard hourly rate for work outside standard hours, commonly evenings, weekends and public holidays, to make up for the less sociable timing.

How it works

The term is used most formally in Australia, where many industry awards set exact loadings for particular time bands: for example, a set percentage on top for Saturday work, a higher one for Sunday, and a higher one again for public holidays. The rate that applies usually depends on the award or enterprise agreement covering the role.

New Zealand doesn't have a centralised award system in the same way. Pay for weekend, evening or public holiday work is generally set out in individual or collective employment agreements. Public holidays are covered by the Holidays Act, which has its own rules (broadly, time and a half plus an alternative day) rather than an award-style schedule of penalty rates.

What it means for a roster

For a shift-based casual workforce, knowing which shifts attract a higher rate (a Saturday night compared with a weekday afternoon, or a public holiday compared with an ordinary Sunday) affects payroll accuracy and the forecast cost of the roster. A shift's timing has to be right in the roster, with the correct date, start and finish, before the pay rate can be right further down the line.

This is a general description, not legal, payroll or industrial-relations advice. Penalty rate and public holiday pay obligations vary by jurisdiction, award and agreement, and change over time. Check current NZ (Employment New Zealand, Holidays Act) or AU (Fair Work) guidance before setting pay policy.

In Chronomancer

Chronomancer records each night's date and expected start and finish times, and can mark a night as a special event, so the roster carries what a payroll process needs to apply the right rate. Chronomancer doesn't calculate or apply pay rates itself, but the shift data is structured to support whoever does.