Piece rate employees are those employees paid a rate of pay per output or task (for example, a fruit picker paid per bucket of fruit picked) as opposed to a rate of pay for a period worked (for example, an hourly or weekly rate of pay).

From 1 January 2010, modern awards cover most workplaces. The commencement of modern awards means that there have been changes to minimum terms and conditions for many employees, including piece rate employees.  The changes vary by State, industry and employer.

Transitional arrangements in most modern awards (the model transitional provisions) mean that the new piece rates in most cases do not commence until the first full pay period on or after 1 July 2010. 

Important! This means that pay rates of pay for many piece rate employees change on 1 July 2010.

These transitional arrangements also provide that the changes to wage rates in most modern awards (including piece rates) can be progressively implemented over a four year period by reference to pre-modern award and modern award entitlements.

Under those transitional arrangements minimum wage rates in modern awards (including any increases from Fair Work Australia’s Annual Wage Reviews) apply in full from the first full pay period on or after 1 July 2014.