Penalty Rates Act Shields 2.6M Aussie Workers’ Wages
The Fair Work Amendment (Protecting Penalty and Overtime Rates) Act 2025 today passed the Australian Parliament, ensuring the penalty and overtime rates of 2.6 million Australians who work public holidays, weekends, late nights and early mornings are protected by law.
The legislation preserves penalty and overtime rates as fundamental entitlements within the modern awards safety net by ensuring these rates cannot be reduced or substituted in a way where workers lose out on their take-home pay.
This legislation delivers on the Albanese Labor Government’s election commitment and is just one of the ways the Government is supporting Australians with the cost-of-living.
Employees who rely on modern awards, are more likely to be women (59.8%), work part time (66.7%), be under the age of 35 (57.3%), and/or employed on a casual basis (48.3%).
Minister for Employment and Workplace Relations Amanda Rishworth said every modern award-reliant worker deserves protection of their penalty and overtime rates as part of a fair and relevant minimum safety net.
“If you work during hours when most Australians are spending time with family, you deserve fair compensation for the sacrifice you make to keep the country running,” Minister Rishworth said.
“Penalty and overtime rates are not a bonus or a luxury. They are a core entitlement to help those important workers in our society who work weekends and overtime hours.”
“For many Australians, penalty and overtime rates mean the difference between getting by and falling behind. This legislation guarantees their earnings are no longer at risk,” Minister Rishworth said.
https://ministers.dewr.gov.au/rishworth/penalty-rates-act-protects-wages-26-million-australian-workers