Overtime is calculated on an employee's ordinary hourly rate.
Whether the tool allowance is included in the ordinary hourly rate and paid during overtime depends on the type of work employees do.
Vehicle manufacturing employees
Vehicle manufacturing employees who get paid a tool allowance won't get it paid during overtime.
This is because the tool allowance isn't an all purpose allowance for these employees and not included in the ordinary hourly rate.
All other employees
All other employees who get paid a tool allowance get it paid during overtime.
This is because the tool allowance is an all purpose allowance and included in the ordinary hourly rate.
A tool allowance is paid to:
- tradespersons or apprentices
- carpenters or joiners or shipwrights/boatbuilders.
What to do next
- Use our Pay and Conditions Tool to calculate pay rates, allowances and penalty rates (including overtime).
- Not sure this is your award? Use Find my award to find out which award applies to you.
- Get help with pay.
- Find out about Other workplace relations help
