Salary payments

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.

Clerks Award

Based on what you've told us, it looks like you're covered by the Clerks - Private Sector Award 2010 [MA000002].

An employee can agree to be paid an annual salary instead of a weekly or hourly award pay rate.

The annual salary agreement must be in writing and tell the employee:

  • that they will be paid an annual salary
  • which payments will be included.

Minimum annual salary payment

The annual salary has to be the same amount or more than the minimum weekly wage, plus the award payments included in the salary (eg. penalty rates), an employee would have been paid over:

  • a year, or
  • a shorter period, if the employment ends before a year.

This is to make sure that an employee getting an annual salary isn't disadvantaged.

Review of annual salary

An employee's annual salary has to be reviewed at least once a year.

The review is to make sure that the employee is being paid the correct amount to cover:

  • the minimum weekly wage, and
  • all the included award payments.

Check the Clerks Award for all entitlements for employees who are paid a salary.

Use the Annual salary agreement – Clerks Award template (DOC 55.5KB) to record the details of an agreed annual salary.

To find out more about who this award applies to, go to the Clerks Award summary.

Source reference: Clerks - Private Sector Award 2010 [MA000002] clause 17 external-icon.png

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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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