What is a shift allowance?

A shift allowance is extra pay for working less sociable hours, such as nights, evenings or weekends. It can be a fixed amount per shift or a penal rate, such as time and a quarter or time and a half, on top of your base hourly rate.

How do penal rates work?

A penal rate multiplies your base hourly rate for certain hours, for example 1.25x or 1.5x for weekend or night work. The extra above your normal rate is the allowance you earn for working those hours.

Are shift allowances taxed?

Yes, shift allowances and penal rates are part of your taxable income and are taxed through PAYE like the rest of your wages.

Shift Allowance Calculator

This calculator works out what shift allowances and penal rates are actually worth on top of your base pay, so you can see the real value of working nights, weekends or unsociable hours before you take a job or agree to a roster. Enter your base hourly rate, the penal rate multiplier for your shift hours, how many shift hours you work each week, and, if your employer pays a fixed allowance per shift instead, the dollar amount and number of shifts per week. From these figures the calculator returns the extra you earn per week from shift allowances, the equivalent extra per year, and your effective hourly rate while on shift, combining base pay with the penal loading. This makes it easy to compare a job with a strong penal rate against one with a higher base rate but no shift loading, or to check whether a fixed allowance stacks up against a percentage-based penal rate. Many employment agreements mix both approaches, so use whichever input matches your situation, or both together. Shift allowances and penal rates count as taxable income and are taxed through PAYE with the rest of your wages, so the amount in your bank account will be lower than the gross figures shown here. Check your own employment agreement for the exact rates, as this is an indicative estimate only.

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Base hourly rate

Penal rate multiplier

Shift hours per week

Fixed allowance per shift

Shifts per week (for fixed allowance)

extra per week from shift allowances

Per year$0

Effective hourly on shift$0

Shows the extra above your base rate. Allowances and penal rates are taxable through PAYE, so the after-tax value is lower. Check your employment agreement for the exact rates. Estimate only.

How it works

The calculator takes the extra above your base rate from the penal multiplier on your shift hours, plus any fixed per-shift allowance across your shifts, to give the weekly extra and the yearly total. It also shows your effective hourly rate while on shift, so you can see what the unsociable hours are really worth before tax.

Worked example

On a $28 base rate, 20 hours a week at a 1.25x penal rate adds 0.25 x $28 x 20, about $140 a week or roughly $7,280 a year, lifting your effective shift rate to $35 an hour.

Related calculators

Overtime Pay Calculator: overtime hours.
On-Call Allowance Calculator: on-call pay.
PAYE Calculator: tax on your pay.
Hourly to Salary Calculator: convert pay.

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