Paying your employees

As an employer, you must pay your employees at the correct rate, as well as any entitlements they are eligible for. This includes parental leave, sick leave or overtime rates.

The wages and entitlements your employee is eligible for can depend on:

  • their age
  • the state they're in
  • your industry
  • their qualifications
  • their work duties and responsibilities.

Working out pay for your employees

To help you work out what you need to pay your employees, the Fair Work Ombudsman (FWO) has created a Pay Calculator. You can use this online tool to calculate modern award pay rates for your employees, including:

  • base pay rates
  • allowances
  • overtime and penalty rates
  • pay rates per hour
  • pay rates for entire shifts
  • their employment status (full-time, part-time, casual).

WA sole traders and partnerships in the WA industrial relations system should refer to WA pay rates and WA hours of work, overtime and penalty rates.

National minimum wage in Australia

The national minimum wage increased in Australia on 1 July 2017.

You'll need to apply the wage increase for your employees from the first full pay period starting on or after 1 July.

The new national minimum wage is now $694.90 (up from $672.70 per week) or $18.29 per hour (up from $17.70) for a 38-hour week.

The increase only applies to employees that get their pay rates from:

  • the national minimum wage
  • a modern award
  • a registered agreement (in some cases).

Use the Pay Calculator to check and read more information on Finding the right pay through the FWO website.

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