1 in 3 workers say unpaid overtime is expected or encouraged

Alarming rates of unpaid overtime are showing up across the workforce. New findings have revealed that staff shortages and employer expectations are playing crucial roles.

Unpaid overtime widespread

A large proportion of men and women across all ages in all industries and occupations worked several hours of unpaid overtime each week, according to new research.

In addition, it showed that while 44 per cent of workers were unsatisfied with their working hours, 30 per cent of workers wanted more paid hours. Of this group, many worked casual jobs (52 per cent), and many were also aged between 18 and 24 (44 per cent).

These findings were unveiled in a recent survey by the Centre for Future Work at The Australia Institute (the centre) for the 2025 Go Home on Time Day. A total of 1,001 Aussie workers were asked about their preferences for paid working hours and overtime.

The data revealed that employees worked an average of 3.6 hours a week of unpaid overtime, adding up to 173 hours, or over 4.5 weeks per year (11.8 per cent of total paid work). At the median wage rate, this amount of time adds up to a total of $7,930 per worker, per year, an economy-wide income loss of $95.78 billion per annum.

Along with financial costs, unpaid overtime was also shown to be detrimental to worker wellbeing and relationships, the findings revealed. The research revealed that workers suffered negative impacts such as physical tiredness (42 per cent), mental drain (37 per cent), stress or anxiety (35 per cent), interference with personal life or relationships (31 per cent), and disturbed sleep (23 per cent).

Part-time and young workers vulnerable

Its research further revealed that many of those who worked unpaid overtime were young part-time and casual workers. Alarmingly, workers aged 18–24 worked more overtime in a week (4.7 hours), compared with full-time (3.8 hours) and part-time (3.7 hours) workers. The centre said these younger employees suffered greater costs due to receiving shorter paid work hours and lower pay rates.

Almost one in three (32 per cent) workers told the centre that “unpaid overtime is either expected or encouraged” in their workplace. Many employees had a workplace culture that normalised unpaid overtime, with 60 per cent finding unpaid overtime necessary to meet workplace expectations. Additionally, a heavy workload (41 per cent) and staff shortages (28 per cent) also played major roles in normalising work outside scheduled work hours.

Right to Disconnect making a positive impact

Despite a concerning incidence of unpaid work, the survey revealed that rates of unpaid overtime are continuing a slow decline from 2024. In a statement, the centre said this “suggests the ‘Right to Disconnect’ legislation … may be having its intended impact”.

The centre concluded that further decreases may be imminent for 2026 as a result of the extension of RTD laws to small businesses in August 2025.