Definition, Meaning & Synonyms

penalty rates

noun

/ˈpɛnəlti reɪts/

Definition

Higher pay rates given to employees for working outside normal hours or on public holidays.

Examples

Many workers look forward to penalty rates during holiday seasons, as they can significantly increase their income.
In Australia, penalty rates are a common feature in industries like hospitality and retail.
She appreciated the penalty rates for working late shifts at the hospital.

Meaning

Penalty rates are an additional payment made to workers for hours worked beyond their regular schedule, typically during weekends, public holidays, or at other non-standard times.