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Describe your problem and we'll help solve it with straightforward, general advice.
We can also meet with you at your workplace to discuss how Employsure's paid services can help you navigate complex issues.

Ensure You're Paying Your Employees The Correct Wages

Pay rates are constantly changing with annual Minimum Wage reviews and updates to Modern Awards. Employers should regularly review their wages to ensure that they are paying their employees the correct amount.

Currently, the National Minimum Wage in Australia is $19.49 per hour, or $740.80 per 38-hour week (before tax). This is the absolute lowest an employee can be paid.

Armadillo and Customline Campers, QLD
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More than 25,000 Australian businesses trust Employsure’s expert advice on workplace relations.

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Pay Rates & Wages with Employsure

As the leading workplace relations specialists, Employsure can:

  • Calculate accurate wages for all your employees
  • Share immediate updates for any changes to pay rates
  • Discuss payroll information and necessities
  • I called to get clarification on an award and was absolutely amazed at the quality of the free information they provided. Very informative and helpful.

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    Why is the Employer Helpline Free?

    Because we're confident you’ll find the Employsure experience so beneficial, we’re happy to offer this initial consultation free of charge.

    This way, if you encounter more complex, ongoing issues with the Fair Work Act, you’ll already know that Employsure are the experts you can trust.
    Besides, employees have unions, industry associations, the Fair Work Commission.

    Who do you have?

    If you have a question, who can you call?
    We are here to be your support and adviser. We only work with employers. Nobody else. We work with thousands of businesses like yours. We’re on your side.
    Ask us anything. Tell us what you’re thinking. It’s entirely confidential.

    Let’s work together, to make sure you get it right.

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    Employsure takes the complexity out of workplace laws to help small business employers protect their business and their people.

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    FAQs

    How much do you pay employees?

    How much to pay an employee is a difficult question confronting all businesses.

    Employers must abide by the minimum pay and conditions outlined in the relevant employment legislation. If the employer is in the federal system, the terms and conditions of employment will be regulated by the Fair Work Act 2009 as well as any applicable industrial instruments such as modern awards or enterprise agreements. Failure to comply with the relevant minimums may result in underpayment and potential sanction.

    However, in many cases, to attract and retain talent it is desirable to pay employees more than the minimum.

    When considering what to pay an employee, a business should consider:

    • what an employee wants to be paid;
    • what the business can afford to pay;
    • the skills held by the individual employee;
    • the value of the position;
    • state of the labour market;
    • market value; and
    • the payment relative to other staff existing staff members.
    What is the best way to pay employees?

    There are many different ways to pay an employee. The best way to pay employees will depend on the circumstances of your business.

    Many employers are attracted to the prospect of paying a salary. The benefits of a salary include:

    • employees are guaranteed a certain amount of pay per pay cycle. This is often of great benefit to employees, who are better able to budget, forecast expenses, procure finance etc.;
    • higher perceptions of job status; and
    • reduced administrative burden.

    However, it must be noted that a salary cannot be less than the amount an employee would otherwise be entitled to under the applicable award or enterprise agreement and the National Employment Standards.

    Some employers prefer to pay in accordance with the Award, which offers the following benefits:

    • lower margin of error;
    • no inflation of costs; and
    • payment of wages is only based on actual work performed.

    In most cases, an award or enterprise agreement will set out the frequency and method of payment.  If an employee is award free or an award or enterprise agreement does not outline a frequency, then employees must be paid at least monthly.

    Unless otherwise specified in an award or enterprise agreement, an employee may be paid by way of:

    • cash;
    • cheque, money order or postal order (payable to the employee); or
    • electronic funds transfer.
    What information is needed for payroll?

    Generally, information required for payroll reflects requirements of employment and taxation legislation.

    As a starting point, businesses typically rely upon the following information:

    1. Name of the employee
    2. ABN and name of the business
    3. Date on which payment was made
    4. Pay period
    5. Net and gross amounts of the pay
    6. Other contributing aspects of the pay: overtime, commission/bonus, allowances, penalty rates, etc.
    7. Hours worked
    8. Details of deduction, if any, from employee’s pay
    9. Superannuation contribution
    10. Pay rate
    How do I make a payroll?

    The term payroll generally refers to the total amount of money that a business pays to its employees. Generally, payroll is determined by adding the total amounts payable to employees over a set period (eg. monthly).

    Can a small business pay employees cash?

    An employer may pay an employee in cash so long as it does not contravene a payment method outlined in an applicable award or enterprise agreement.

    Payment in cash does not exempt an employer from their employment, taxation or superannuation obligations.

    What is the basic minimum wage in Australia?

    The basic minimum wage or National Minimum Wage in Australia is $19.49 per hour, or $740.80 per 38 hour week (before tax).

    Casual employees covered by the national minimum wage also get at least a 25% casual loading.

    For award and agreement-free junior employees, a percentage scale is applied.

    If an employee is covered by an award or enterprise agreement the minimum wage will be determined by a modern award or enterprise agreement rather than the National Minimum Wage.

    What is the minimum casual wage in Australia?

    The basic minimum wage or National Minimum Wage in Australia is $19.49 per hour, or $740.80 per 38-hour week (before tax) for an full-time or part-time adult.

    Casual employees covered by the national minimum wage also get at least a 25% casual loading.

    This equates to $24.36 per hour.

    What is the minimum wage in Australia for 17-year olds?

    The minimum wage for an permanent award free 17-year old employee (not engaged on an apprenticeship) is $11.27 per hour.

    If the employee is a casual employee, they will also receive at least a 25% casual loading on the above amount.

    Please note that the rate may vary if the employee is covered by a modern award or enterprise agreement.

    Some awards and enterprise agreements do not contain provisions for junior rates. If the award or enterprise agreement does not contain provisions for junior rates, an employee may be entitled to the full adult wage.

    What is the minimum wage in Australia for part-time?

    The minimum wage for a part-time employee will depend on various factors including:

    • whether or not the employee falls under a modern award or enterprise agreement;
    • experience and skillset; and
    • age

    Different awards have different minimum wages that will either be on par with the National Minimum Wage or higher.

    Currently, as of 1st July 2019, the National Minimum Wage in Australia is $19.49 per hour, or $740.80 per 38-hour week (before tax).

    Are employers required to pay holiday pay?

    All employees (except for casual employees) are entitled to paid annual leave subject to the relevant terms contained within the Fair Work Act 2009 and any applicable modern award or enterprise agreement.

    The National Employment Standards may also entitle a permanent employee to be absent from work on a day (or part day) that is a public holiday. In these circumstances, if the employee is absent then the employer might also be required to pay the employee for their ordinary hours. Casual employees will not be entitled to payment should they be absent from work on a public holiday.

    Does salary include holiday pay?

    A salary may or may not include holiday pay.

    If an employer opts to include holiday pay, the terms of the arrangement should be recorded in writing. A salary cannot undercut award or enterprise agreement entitlements. Whilst the holiday pay component can be included into the salary, employees are still required to take their leave.

    Do all employees get holiday pay?

    All employees (except for casual employees) are entitled to paid annual leave subject to the relevant terms contained within the Fair Work Act 2009 and any applicable modern award or enterprise agreement.

    The National Employment Standards may also entitle a permanent employee to be absent from work on a day (or part day) that is a public holiday. In these circumstances, if the employee is absent then the employer might also be required to pay the employee for their ordinary hours.

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