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Wages

Information about when you should be paid, and how much.

What are ​​​​wa​​ges?

If you are employed, you are entitled to be paid for the work that you do. The payment you receive is called a wage or salary. Your employer can pay you in cash, by cheque or deposit the money into your bank account.

Your employer must give you a payslip that shows how much you were paid, including superannuation and any deductions, such as tax. You should receive your payslip within one working day of your payday.

Even if you are paid in cash, your employer has to give you a payslip. If you don't get a payslip, you can ask for one. The payslip will show whether your employer is following the law by paying you superannuation, for example.

If you are not paid or you haven't been paid the right amount, there are steps you can take to try and recover the money that you are entitled to.

For more information, see What if my entitlements are not paid?

How much should I be paid?

The amount you are paid will depend on the minimum wage, your award (if you have one), your enterprise agreement (if you have one) and your employment contract

Some employees may be entitled to overtime, allowances, commissions and bonuses as well as their ordinary wage.

Minimum wage

Most employees must be paid at least the national minimum wage. Some employees are entitled to a higher minimum wage, set out in their award or enterprise agreement.

For the current national minimum wage rate, see The national minimum wage on the Fair Work Commission website. 

Not all employees are paid at or above the minimum wage. To find out which employees should be paid the minimum wage, see Minimum wages on the Fair Work Commission website. If you are not sure if you should be paid the minimum wage, you should get legal advice.

Your award

An award sets minimum terms and conditions for employees and may say what minimum hourly rate you should be paid. The amount may depend on how long you have worked in your role.

Not all employees are covered by an award. To find out what award might apply to you, see the Fair Work Ombudsman website.

Enterprise agreement

An enterprise agreement is an agreement between an employer and their employees about terms and conditions of employment. Enterprise agreements must be approved by the Fair Work Commission.

When a workplace has an enterprise agreement, the award that would normally apply no longer applies. But the pay rate in the enterprise agreement cannot be less than the pay rate in the award. If an enterprise agreement applies to your workplace, it will tell you what the minimum wage for your position is. 

You can search for an enterprise agreement using the Fair Work Commission website. It can help if you know the name of the agreement or the agreement ID number. For more information, see Find an enterprise agreement on the Fair Work Commission website.

Your contract of employment

Even though your award or enterprise agreement may say that you are to be paid at a particular rate, you and your employer can agree that you be paid at a higher rate. 

You may not realise you have a contract of employment. In many cases an employer will have all new employees sign a contract of employment. Even if you haven't signed a written contract, if you are working for someone, you have a contract of employment. The terms of the contract will be determined by things such as:

  • what was said when you were employed
  • what has happened while you have been employed
  • what is the normal practice in your industry
  • what is in the award
  • what the national employment standards are.

If you are not sure what the terms of your contract of employment are, you should get legal advice.

An employment contract can’t exclude terms and conditions in an award or enterprise agreement.

Overtime, penalty rates and allowances

Overtime

Under the National Employment Standards (NES), the maximum hours of work for a full time employee is 38 hours per week. Overtime is any work that you do outside of your normal working hours. Generally overtime is paid at a rate higher than your usual hourly rate. The hourly rate you are paid will depend on:

  • your award or enterprise agreement
  • the day that you do the work (generally overtime is paid on Saturdays and Sundays)
  • the time in excess of the normal hours you work.

Your employer can ask you to work additional hours but the request must be reasonable. If your employer is forcing you to work unreasonable extra hours, you should get legal advice.

Penalty rates

If you work late nights, early mornings, weekends or on public holidays, you may be entitled to a higher rate of pay. These higher rates are called penalty rates, and they can be different depending on your job or industry you work in. How much you should be paid for working during these times will depend on your award, enterprise agreement or contract of employment.

If you are only covered by the NES you are not entitled to penalty rates.

Allowances

Some employees may be entitled to extra payments, for things like:

  • working in extreme temperatures
  • wearing a uniform
  • meals
  • wear and tear of their own tools
  • working in dirty or dangerous conditions.

These types of payments are called allowances. The allowances that you are entitled to should be set out in the award or enterprise agreement you are employed under, or your contract of employment.

If you are entitled to overtime or any allowances, these will usually be paid at the same time that you receive your wages. For example, weekly, fortnightly or monthly. Overtime and allowances are usually singled out on your payslip so you can easily check how much you were paid for these entitlements.

If you are dismissed (sacked) from your job, you should still be paid any allowances you are entitled to and any overtime that you worked until your last day of employment. You should receive these payments when you leave your job or on the next scheduled payday.

If you haven't been paid or you haven't been paid the right amount, there are steps you can take to try and recover the money that you are entitled to. For more information, see What if my entitlements are not paid?

 If you are not sure if you are entitled to overtime, penalty rates or any allowances, you should get legal advice.

Commissions and bonuses

Commissions

An employee who is paid a commission normally gets a fee or percentage based on how much they sell. This is common in car sales and real estate (property) sales. A commission can either be the whole wage or be paid as an extra payment on top of a base wage.

Whether a commission is payable will generally be in your contract of employment, enterprise agreement or award. If you are not sure if you should be paid a commission, you should get legal advice.

Not all employees can be employed on a commission only basis (that is, you are only paid a commission).  If you are employed on a commission only basis there may be minimum conditions of employment that apply to your job, including a minimum wage. You should get legal advice to find out what, if any, minimum conditions apply.

Bonuses

A bonus is a payment made to an employee for performing to a certain standard, or reaching a specific target. For example, you may be paid a bonus for selling a certain number of your employer's products in a one-year period, or if your employer made a set profit for the year.

Whether a bonus is payable will generally be in your contract of employment, enterprise agreement or award. If you are not sure if you are entitled to a bonus, you should get legal advice.

A commission is usually paid at the same time you receive your wages. For example, weekly, fortnightly or monthly. A bonus may be paid at the end of a specified period, for example at the end of the financial year.

If you are dismissed (sacked) from your job, you may still be entitled to be paid any bonus or commission owing to you. These payments may be made with your final pay when you leave your job or on the next scheduled payday. In some cases the payments could be made later. For example, your employer may need time to collect sales figures or targets to determine how much you should be paid.

For some employees the payment of a bonus may be discretionary. This means that the payment of a bonus is a decision for your employer to make, and you may not be able to recover it if it is not paid.

If you haven't been paid or you haven't been paid the right amount, there are steps you can take to try and recover the money that you are entitled to. For more information, see What if my entitlements are not paid?

When should I be paid?

If you are covered by an award or an enterprise agreement, it should specify when your wages should be paid. For example, it might say that you should be paid weekly or fortnightly.

If you are not covered by an award or an enterprise agreement, and your contract of employment doesn't say how often you should be paid, then you must be paid at least once a month.

If you are dismissed (sacked) or resign from your job, you are entitled to be paid for the hours that you have worked. This amount, as well as any other amount you are entitled to, should be paid when you leave your job or on the next scheduled payday.

If you are not paid or you haven't been paid the right amount, there are steps you can take to try and recover the money that you are entitled to.

For more information, see What if my entitlements are not paid?

Deductions

A deduction is when your employer takes money out of your pay.

Examples of deductions include:

  • salary sacrificing
  • voluntary superannuation contributions
  • union fees
  • costs of petrol for private use of work car
  • costs of personal calls on work phone.

Your employer can only deduct money from your pay if:

  • you agree in writing
  • it is allowed under a law, court order or Fair Work Commission order
  • it is allowed under your award
  • it is allowed under your agreement, and you agree to the deduction.

For more information, see Deducting pay on the Fair Work Ombudsman website.

Overpayments

Your employer may have a legal right to recover money they have overpaid you, but they can't deduct it from your pay unless you agree. If you have been overpaid, you should make a written agreement with your employer that covers:

  • the reason for the overpayment
  • the amount to be repaid
  • how and when each payment will be made, and
  • the amount of each repayment.

For more information, see Overpayments on the Fair Work Ombudsman website.

If your employer deducts money from your pay without your agreement you should speak to the Fair Work Ombudsman.

If your employer is taking legal action against you to recover a debt, you should get legal advice.