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Penalties, allowances and loadings


Additional payments made to you if you undertake certain tasks such as using your own tools or performing your work under adverse conditions. Types of allowances include disability allowances, height allowance, dirt or danger money, qualification and supervisory allowances.

Meal allowance

An allowance paid to you if you work overtime to compensate for the cost of a meal. The allowance, and the conditions under which it must be paid, are set out in your award.

Shift allowance

An allowance paid for working a shift. This money compensations you for working during non-standard (day time) hours (eg afternoon shift, night shift or early morning shift).


Any payments made to you, over and above your normal award rate, to compensate you for some particular aspect of your job (eg shift loading) or for some aspect of your employment (eg remote geographic location).

Penalty rate

A higher rate of pay which compensates you for work done outside usual hours, such as late at night or on public holidays. 

( [NSW IR homepage]

( [Fair Work homepage]


Copyright © 2011 Money Stuff

An initiative from NSW Fair Trading


Last Updated: 26 November 2012

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This information must not be relied upon as legal advice. For more information about this topic, refer to the appropriate legislation.

© State of New South Wales through NSW Fair Trading
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