How to guide
calculate your loadings or penalty rates
This is Section C of the How to guide to calculate rates of pay and penalty rates. This section of the guide will help you work out your loadings or penalty rates.
The full How to guide to find your entitlements includes:
The focus of this section is how to calculate penalty rates or loadings where your modern award contains the model transitional provisions.
If you want to calculate a base rate of pay rather than a loading or penalty rate, you should refer to
Section B - Calculate your base rate of pay.
Is this section relevant to me?
Terms and conditions of employment for many workers are changing due to the commencement of modern awards.
‘Phasing penalty rates and/or loadings’ refers to the process of gradually moving to the modern award penalty rates and loadings over a 4 year period. This may also involve ‘phasing out’ certain pre-modern award entitlements.
The phasing of penalties and/or loadings is not relevant to all employers and employees. We will ask you questions in this guide to check whether phasing of penalties and/or loadings is relevant to you.
Note: Phasing of loadings and/or penalties will not be relevant to you if:
Getting prepared
We are now going to find your loadings and/or penalty rates.
To proceed, you will need to know:
- your modern award
- your pre-modern award(s)
- Whether the employment is part-time, full-time or casual; and
- What transitional arrangements the modern award contains.
If you need help to find the modern award and pre-modern award that cover you, Section A - Find your modern award and pre-modern award will assist you.
Other assistance
As you work through the examples about how to calculate your penalty rates or loadings, you may wish to use the following tools to help you perform your calculations:
If you encounter issues at any point, please contact the Fair Work Infoline on 13 13 94, Monday to Friday 8:00am to 6:00pm. Before calling, please read the key questions our Fair Work Infoline advisor may need to ask you.