Salary payments

myth logo Myth: Long hours are just part of the job when you’re on a salary.

Fact: It's common for salary employees to be expected to work reasonable additional hours, however, you can't be asked to work any number of additional hours.

So how do you know what's reasonable? It depends on a few things, but a key factor is whether your salary is at least equal to what you would have earned under the award for the hours you worked (including any overtime or penalty rates that would have applied).

Check how your salary stacks up using our Pay Calculator to check your award pay.

An annual salary is an agreement about the amount of pay for work over a 12 month period. They are often included in employment contracts.

An annual salary can't be less than the minimum entitlements an employee is entitled to under the award or registered agreement that applies and the National Employment Standards.

The requirements that need to be met when agreeing to an annualised salary can be outlined in an award, employment contract, enterprise agreement or other registered agreement.

An employer and employee can agree that an annual salary covers entitlements like:

  • minimum weekly wages
  • penalties
  • overtime
  • allowances
  • annual leave loading.

Find out the rules in your award about making an annual salary agreement by selecting from the list below.

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Best practice tip

Check your employment contract for details of any annual salary arrangements.

Records of annual salary arrangements

Salary agreements should be documented in writing, and identify which entitlements are included in the payment.

The employer and the employee should keep a copy of the agreement.

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