I'm not sure what to pay my employees

Knowing the law can avoid serious penalties and problems in your workplace.

Find out how to check what you should be paying your employees.

On this page:

Have the right information

The first step to paying employees correctly is to make sure you have the right information.

Award or enterprise agreement

As a start, you will need to know your enterprise agreementAn enterprise agreement sets out minimum employment conditions and can apply to one business or a group of businesses. or awardAn award is a legal document that outlines the wages and conditions of employment for employees that are covered by it within a particular industry or occupation. Other known term: modern award..

If you think the business has an enterprise agreement in place, you will need to search for it on the Fair Work Commission website.

If your business is covered by an award, you need to find the award from our List of awards page. Keep a link handy.

If you’re not sure which award applies, follow our advice on I’m not sure which award covers my business.

Important: Award and agreement free

Some jobs and industries aren’t covered by an award or enterprise agreement. In this case, an employee has to be paid at least the National Minimum Wage.

Learn more at Award and agreement free wages and conditions.

If you think an award or enterprise agreement may not apply to your employee, it’s best to call us to check.

Employee information

The right pay will also depend on knowing the employee’s:

  • employment type, such as full-time, part-time or casual
  • duties performed
  • age, qualifications and experience.

Work out what to pay your employee

You should now know whether an award or enterprise agreement applies. You should also know some key information about your employee.

Remember: if the employee isn’t covered by an award or enterprise agreement, the National Minimum WageA pay rate that applies to employees not covered by an award or registered agreement. Certain award or agreement free employees may have different pay entitlements depending on whether they have a reduced work capacity because of disability, if they're under the age of 21 or if they are an apprentice or trainee. will apply.

Enterprise agreement pay

If an enterprise agreement applies to your business, it will outline the minimum entitlements for employees working for a business or group of businesses.

Although enterprise agreements may have minimum pay rates, they can’t be less than the base pay rate in an applicable award.

For information about how to find and read an agreement, visit Finding an agreement.

Award pay

If your business doesn’t have an enterprise agreement, then employees will usually be covered by an award. You can:

  • learn about awards and check entitlements and obligations at Awards
  • find your award rates including penalty rates, overtime and allowances using our Pay and Conditions Tool.

Use the Pay and Conditions Tool

One option is to use our free Pay and Conditions Tool. It steps you through the process of finding minimum pay rates, allowances and penalty rates (including overtime) for employees based on award, employment type and level.

Pay and Conditions Tool

Download a pay guide

Another option is to download a pay guide for your award. A pay guide is a downloadable document that outlines minimum pay and other rates under the award.

Access your award’s pay guide from our Pay guides page.

Tip: Help for small business

We have information, tools and resources to help small business employers in our Small Business Showcase.

We also have our Employer Advisory Service, which gives eligible small businesses free tailored written advice on pay and entitlement issues. Learn more at Employer Advisory Service.

If a pay issue arises

Sometimes your employee might disagree with you about their pay rate. For example, they might not agree with their award classification and the pay rate associated with that classification.

If the issue is about a classification under an award or enterprise agreement, you should sit down together and have a conversation. It could involve reading through the duties of the role and the classification list in the document.

Remember that the:

  • level that most closely aligns with the employee’s duties will apply, and
  • classification may depend on things like years of experience or a formal qualification.

These issues will be covered in the award or enterprise agreement, so read them closely.

To understand award classifications, use our Award classifications guide.

Example: Employee’s role changes

Judy employs Amy as an office worker under the Clerks Award. Judy wants to promote Amy to office manager.

The new role will involve increased responsibilities and duties.

Judy creates a job description and writes down the main tasks that Amy will perform.

Judy and Amy sit down together to go over the new role and they compare the duties to the classifications listed in Schedule B of the Clerks Award.

The two agree that her new duties most closely align with a level 4 classification and they base her new wage on that level.

If you have discovered that you have paid your employee incorrectly, go to I think I’ve underpaid my employee.

Stay up to date with changes

It’s important to stay up to date with changes so that you meet your obligations. You can:

Tools and resources

Related information