Your award wage questions answered
Understanding changes to award wages is important for every employer.
The Fair Work Commission updates award wages yearly. Master Electricians can access up to date Award Summaries online on the MEA website.
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MEA’s Employer Advice Manager Jordon Carlisle ran an industry webinar where he answered a range of your questions about award wage changes and paid FDV leave.
Q: If I’m paying above the award wage, am I be required to increase the pay?
A: No, employers can absorb the wage increase if their rate is sufficiently high enough.
Q: Do the pay increases apply to the base wages or to what employees are paid currently?
A: You’re not obligated to increase if already paying above the award.
Q: Does the award change affect travel allowances?
A: There will be an increase to these allowances. Travel allowances are among the group of allowances that are increased by specific CPI sub-groups, which are reported on by the ABS. They are not increased by the percentage of the National Minimum Wage Decision.
Q: Why is the tool allowance rolled into the hourly rate as opposed to keeping a separate allowance? Can it be split?
A: The award requires that this allowance by treated as an ‘all-purpose’ allowance under clause 18 of the award. As such, the allowance needs to be included in the calculation of ‘all’ wages, including overtime, annual leave, personal/carer’s leave and public holiday payments. There are requirements to separate these amounts on the worker’s payslips under Single Touch Payroll Phase 2; however, these are reporting requirements for the ATO and do not affect the way the wages are calculated.
Q: Is there a clause in the electrical award regarding RDO accrual?
A: An RDO operates by 19 days of eight hours worked, which is 7.6 hours paid and 0.4 of an hour banked towards the paid day off on the 20th day of the work cycle. It is a strict arrangement of hours of work.
Master Electricians can access a wide range of relevant award summaries online. If have questions about award wages, leave, or other workplace relations questions, Master Electricians have unlimited access to the MEA Employer Advice Hotline. Phone 1300 889 198 to speak to the experts.