Work

Awards, pay and payslips

The basics of Australian pay: minimum wages, awards, casual loading, super and the details to check on every payslip.

By KangaRoute 8 min read
Guide image Awards, pay and payslips

In Australia it's not enough to ask "how much do they pay me?". You need to understand if the pay is correct for the role, the sector, the type of contract and the hours. The main reference is often the award, i.e. the legal document that establishes pay rates and minimum conditions for a sector or occupation.

In short

When you start a job check:

  • hourly rates;
  • applicable award or agreement;
  • casual loading;
  • penalty rates;
  • overtime;
  • superannuation;
  • payslip;
  • any deductions.

If you don't receive payslip or don't understand how your pay is calculated, don't wait months to ask questions.

Minimum wage and award

Fair Work means that all employees in Australia are entitled to a minimum wage. For many jobs, however, the minimum wage is not just the National Minimum Wage: it depends on the applicable award or enterprise agreement.

The awards can define:

  • classifications;
  • hourly rates;
  • casual loading;
  • allowances;
  • overtime;
  • penalty rates;
  • break;
  • rules for part-time and casual.

For example, hospitality, horticulture, cleaning and retail can have different awards. Two jobs that pay "by the hour" can have very different rules.

Casual loading

If you are casual, you often receive a higher rate because you don't have many permanent employee benefits, such as annual leave and sick leave. Fair Work indicates that casuals can receive casual loading or a specific casual pay rate.

Always ask if the salary offered to you:

  • includes casual loading;
  • includes penalty rates;
  • includes allowances;
  • it is hourly or piece rate.

A phrase like "30 all inclusive" is not enough. You need to know what it includes.

Payslip: what it must contain

Fair Work indicates that the payslip must be given within 1 working day of payment. It can be electronic or paper, but must contain clear information.

Check that there are:

  • name of the employer;
  • ABN, if applicable;
  • your name;
  • pay period;
  • payment date;
  • gross pay;
  • net pay;
  • hourly installments and hours, if paid by the hour;
  • loadings, allowances, bonuses or penalty rates;
  • deductions;
  • superannuation contributions.

If you are paid cash, the payslip is still needed. Cash does not mean undocumented.

Super in the payslip

The payslip can indicate super paid or payable contributions. Don't just look at the net in the bank - super is part of the value of the work.

If you work for months and never see super or don't know which fund it goes into, ask for clarification. There could be a problem or simply a payment timing, but it must be monitored.

As soon as you have your TFN, consider opening your own super account and communicating it to your employers. It's easier to have just one fund, just one member number and just one login to control. If you do not choose a fund, the employer can use an existing stapled fund or a default fund; changing many jobs, this can create confusion and unnecessary costs.

Examples of funds/sites from which to inform yourself, only as examples and not as financial advice:

  • AustralianSuper;
  • Hostplus;
  • REST Super.

Every time you receive a payslip, check that the super is indicated and that the fund is the right one. When you leave Australia, in some cases you will be able to request it via DASP, so the more you order now, the less stress you will have later.

Deductions and accommodation

Some regional jobs connect work, housing and transportation. Withholdings are not automatically illegal, but they must be clear and correct.

Before accepting ask:

  • how much the accommodation costs;
  • when it is detained;
  • if it is mandatory;
  • what happens if the work ends;
  • if there are bonds or fees;
  • if everything appears in payslip.

Don't accept vague costs or unexplained deductions.

Piece-rate farm work

In some agricultural jobs you can be paid in piece installments, that is, based on how much you harvest, package or produce. Fair Work has specific rules for horticulture and piecework, including minimum guarantees and records.

This guide doesn't go into full calculations, but the rule of thumb is: don't accept piece rates without knowing the amount, tasks, hours, records and awards.

Common mistakes

The first mistake is to only look at the net. You also have to look at hours, taxes, super, deductions and penalties.

The second mistake is not saving the payslips. You will need them for taxes, visas, disputes and personal memory.

The third mistake is thinking that low pay is okay because "it's needed for the 88 days". Visa holders have rights at work.

The fourth mistake is not asking which award applies.

Official sources

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