Salary payments

Annual Wage Review – 1 September 2021 changes

From 1 September 2021, minimum wages in the Retail Award are increasing. Updated minimum rates are now available in our pay tools. See our Annual Wage Review 2021 page for more information.

Find out about annual salaries and how they can be arranged.

Annual salary requirements

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.

Restaurant Award

Based on what you've told us, it looks like you're covered by the Restaurant Industry Award [MA000119].

Full-time or part-time employees 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 125% of the minimum weekly wage an employee would have been paid over a year
  • high enough to cover the penalties and overtime the employee would receive if they were paid by the week.

Annual leave loading and allowances can’t be included in the annual salary under this award.

Employees paid an annual salary have to get a minimum of 8 days off per 4-week cycle. If they work on a public holiday, they have to be given the equivalent amount of paid time off or have the amount of time worked added to their annual leave.

Review of annual salary

Employers have to review an employee’s annual salary after each year. If the employee leaves work before completing a year, the salary has to be reviewed for the period of the year that they worked.

The review is to make sure that the employee was paid enough to cover the minimum weekly wage and the included award entitlements.

Employers have to keep a record of the hours the employee worked every week for the review. This needs to be signed by the employee.

If the annual salary paid was not enough to cover the minimum award entitlements, the employer must pay the employee the difference.

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

Exemption rates

Under temporary Schedule R.3, employers and some full-time level 5 and 6 employees can agree to be paid an exemption rate.

Learn more about exemption rates under the Restaurant Award at Temporary workplace flexibility in Restaurant Award.

Restaurant Industry Award resources

We’ve made it easier for you to find information about your pay and entitlements under the Restaurant Industry Award. For more tailored information about your Award, visit our interactive tool.

We've got new and improved templates to help people in the Restaurant Industry. Try our interactive template tools

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

Source reference: Restaurant Industry Award [MA000119] clause 20 and Schedule R.3 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.

Tools and resources

Related information

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