Australian Workers Log Significant Unpaid Overtime

Data from 2026 shows a majority of mid-sized business employees working unpaid weekly hours.

Updated on Oct. 28, 2026 in Employment

Australian Workers Log Significant Unpaid Overtime

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Do you believe working unpaid overtime is a necessary requirement for career progression in your industry?

In 2026, Australian employees across various sectors report consistently working six hours of unpaid overtime each week. This trend is most pronounced in mid-sized businesses, where 44 percent of staff perform such uncompensated labour.

Why it matters

Unpaid work stems from a combination of heavy workloads, persistent staffing constraints, and identifiable skills gaps. These expectations create a financial strain on employees who effectively donate significant labour hours to their employers annually.

Average hourly earnings in Australia sit at $47.90, meaning six hours of weekly unpaid labour represents a value of $13,800 over 48 weeks. Across the country, 38 percent of all workers report clocking these six unpaid hours weekly.

The players

ADP

ADP is a global provider of human capital management solutions that publishes periodic research on workplace trends and employment behaviours.

The details

While mid-sized businesses see the highest rates, small and large organisations report unpaid overtime rates of 38 percent and 35 percent respectively. C-suite executives report high levels of unpaid labour, with 54 percent working six additional hours, compared to 49 percent of knowledge workers.

The findings are drawn from the 2026 ADP People at Work report.

Macro View

The 2026 findings mirror historical cycles where staff shortages and skills gaps force employees to absorb operational pressure. This trajectory diverges from periods of labour surplus where employers typically manage staffing constraints through hiring rather than extending current employee hours.

For the average worker, these findings underscore a significant loss of personal time and a substantial annual financial deficit. Employees should review their employment contracts to confirm whether their current workload aligns with their compensation structure.

The takeaway

Workers should track their weekly hours to determine if their contributions are being adequately reflected in their total compensation. Maintaining a clear record of extra hours can assist employees in negotiating better work-life balance or adjusted pay rates during performance reviews.