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.

Restaurant Award

Based on what you've told us, it looks like you're covered by the Restaurant Industry Award 2010 [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 must be:

  • at least 25% above 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 most allowances can’t be included in the annual salary under this award.

Employees paid an annual salary must get a minimum of eight days off per four-week cycle. If they work on a public holiday, they must be given another paid day off or have another day added to their annual leave.

Review of annual salary

An employee’s annual salary must be reviewed after each year. If the employee leaves work before completing a year, the salary must be reviewed for the period 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 must keep a weekly record of the employee hours for the review.

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.

Use the Annual salary agreement – Restaurant Award template (DOC 54KB) to record the details of an agreed annual salary.

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 2010 [MA000119] clause 28 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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