Based on what you've told us, it looks like you're covered by the Hospitality Industry (General) Award 2010 [MA000009].
An employee can agree to be paid an annual salary instead of a weekly or hourly award pay rate.
Minimum annual salary payment
An annual salary has to be at least 25% above the minimum weekly wage 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.
The salary paid over a year has to be sufficient to cover what the employee would have earned if they'd been paid:
- the minimum weekly wage
- all the included award payments, including overtime and penalty rates.
Review of annual salary
It's best practice to review an employee’s annual salary at least once a year.
The review is to make sure that the employee is being paid the correct amount to cover all their award entitlements.
Salary arrangements for managers
Managers in hotels can be paid a salary that is at least 25% above the minimum annual salary in this award. These employees don’t get the benefit of award entitlements relating to:
- part-time employment
- ordinary hours of work (full-time and part-time employees)
- penalty rates
- payment for annual leave
- additional arrangements for full-time employees (on public holidays)
- provision of employee accommodation and meals.
Check the Hospitality Award for all entitlements for employees who are paid a salary.
Use the Annual salary agreement – Hospitality Award template (DOC 58KB) to record the details of an agreed annual salary.
To find out more about who this award applies to, go to the Hospitality Award summary.
Source reference: Hospitality Industry (General) Award 2010 [MA000009] clause 27