Wage and Pay

Guide Topics

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. Employers should also be aware of the annual minimum wage increase that takes effect every year on or after the 1st of July. Employers must ensure that they are paying their employees at least the minimum wage rate that applies to their industry and occupation. It's also important for employers to understand the rules around overtime rates. If employees work overtime, they must be paid at a higher rate than their ordinary hourly rate. The specific rate will depend on the relevant award or agreement, but generally, it is 1.5 times the ordinary hourly rate for the first two hours of overtime and 2 times the ordinary hourly rate for any additional hours of overtime. Employers must ensure that they are accurately calculating and paying their employees' overtime rates to avoid any legal issues.

For peace of mind, please call our 24-hour Advice Line now on 1300 651 415.

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