Overtime pay refers to the additional compensation employees receive for hours worked beyond their normal working schedule—typically over 38 hours per week in Australia—usually paid at a higher rate (often 1.5 times the regular hourly rate).
For instance, if an employee normally earns $30 per hour and works an additional 5 hours, they might receive $45 per hour for those overtime hours worked.
Overtime pay serves as an incentive for employees to work longer hours when necessary while ensuring they are fairly compensated for their extra efforts.
