Paying wages

When do I pay my employees?

Wages must be paid weekly or fortnightly on a regular pay day. If your business paid wages monthly before 1 January 2010, then you can continue to do so - however all employees classified as Level 3 or below must be paid either weekly or fortnightly.

You must tell your employees, in writing, the day they will be paid each week or fortnight. You must also give your employees written notice if you want to change the payday 4 weeks before the change.

How do I pay my employees?

You can pay employees by cash, by cheque or money order, or by electronic funds transferred directly into their bank account. A pay slip must be provided to your employees within 1 working day of payment of wages.Templates and further information about your record-keeping obligations are available below.

You must pay your employees in full and you cannot exchange goods and/or services for work performed.

Can I pay my employees a flat hourly rate of pay?

Before you decide to pay your employees a flat hourly rate of pay that includes other monetary entitlements (such as allowances, penalty rates and overtime), you must consider the arrangements carefully to ensure you meet your obligations under the Retail Award.

Remember, just because an employee agrees to a rate of pay, does not mean that you have met all of your obligations under the award.

This can be a complex legal issue - you should seek professional advice or help from your employer association about this issue.

Best Practice Tip

Our Self Audit Checklist is designed to help you check your compliance with certain key legal obligations. You can use it to ensure that your payslips and records comply with the Fair Work Act 2009. You can access the Self-audit checklist from the Checklists page.

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Page last updated: 02 Sep 2010