Wage and Pay

Wage and Pay

Paying wages is important to employees and can be complicated for employers. Employees have a right to know how much they will be paid, how often, and how they will be paid, for example, into their bank account. This is usually set out in the contract of employment or employee handbook.

You need to provide an individual, detailed pay slip for each employee within 1 working day of their pay day. Pay slips must show:

• employer’s name and ABN
• employee’s name
• date of payment
• pay period, eg 24-30 March 2016
• gross and net pay
• any loadings, allowances, bonuses, incentives, penalty rates or other paid entitlements
• the pay rate that applied on the last day of employment

If you pay the employee an hourly rate, pay slips must also show:

• ordinary hourly rate
• number of hours worked at that rate
• amount of pay at that rate

If you pay the employee an annual rate (salary), show the rate as at the last day in the pay period. Also show any deductions from their pay including:

• amount and details of each deduction
• name and number of fund/account the deduction was paid into
• any superannuation paid for the employee’s benefit (including contributions made or to be made during the pay period)
• name and number of the superannuation fund

Deductions are another minefield for employers. You can make deductions from an employee’s pay only if they agree in writing and it is for their benefit, if their agreement or award allows, or the law permits deductions for, say, tax or child support.

Download our free e-guide on Wages and Modern Awards

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