Clerks Award pay rates, allowances, and overtime
The Clerks—Private Sector Award 2020 specifically regulates employment conditions for employees in clerical and administrative roles, ensuring they receive fair wages and working conditions. This award applies to a variety of clerical and administrative occupations across different industries, setting essential standards for these workers.
This article examines key aspects of the Clerks—Private Sector Award, including minimum pay rates, wage payment, allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Understanding these elements is crucial for compliance and fair treatment in the workplace.
Note: The information provided in this article is accurate as of 03/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Clerks—Private Sector Award 2020 for the most current information.
Clerks Award minimum pay rates
Understanding the minimum pay rates is crucial for both employers and employees to ensure fair compensation. The following table presents a comprehensive summary of the minimum rates applicable under the Clerks Award, covering various categories of clerical and administrative workers.
Please note that for full-time employees, the minimum weekly rate applies. For part-time employees, the minimum hourly rate specified applies. However, an employer must pay a casual employee a loading of 25% for each hour worked on top of the minimum hourly rate otherwise applicable below:
Category
Description
Rates/Details
Example
Adult employees
Employees aged 21
and over
Level 1 - Year 1: $945.10/week ($24.87/hour)
Level 1—Year 2: $989.80/week ($26.05/hour)
Level 1—Year 3: $1020.30/week ($26.85/hour)
Level 2—Year 1: $1032.30/week ($27.17/hour)
Level 2—Year 2: $1051.40/week ($27.67/hour)
Level 3: $1090.30/week ($28.69/hour)
Call centre principal customer contact specialist: $1098.00/week ($28.89/hour)
Level 4: $1145.00/week ($30.13/hour)
Level 5: $1191.50/week ($31.36/hour)
Call centre technical associate: $1305.20/week ($34.35/hour)
A 35-year-old accounts payable clerk classified as Level 2—Year 1 will be paid $1032.30per week or $27.17 per hour.
Junior employees
Employees aged under 21
Under 16: 45% of adult employee rate
16 years: 50% of adult employee rate
17 years: 60% of adult employee rate
18 years: 70% of adult employee rate
19 years: 80% of adult employee rate
20 years: 90% of adult employee rate
An 18-year-old receptionist classified as Level 1—Year 1 will be paid $661.57 per week or $17.41 per hour (70% of $945.10 per week or $24.87 per hour).
Higher duties
For employees performing duties of a higher classification for more than one day
At least the minimum rate applicable to the higher-level classification
An administrative assistant performing Level 3 duties for more than one day will be paid the Level 3 rate of $1090.30 per week or $28.69 per hour.
Supported wage system
Employees with a disability eligible for a supported wage
Minimum amount payable is determined by assessed capacity and relevant award pay rates
An employee with a disability assessed at 70% capacity will be paid 70% of the relevant minimum rate for their classification.
National training wage
Employees undertaking a traineeship
Rates depend on training package, qualification level, and year of training
A first-year trainee in a Certificate III program will be paid according to the specified rates for that training package and year.
Clerks Award payment of wages
Ensuring timely and accurate payment of wages is a fundamental responsibility of employers under the Clerks Award. Below are the key provisions related to the payment of wages:
General payment of wages
- Pay records and payslips: Regulations 3.33(3) and 3.46(1)(g) of Fair Work Regulations 2009 set out the requirements for pay records and the content of payslips, including the requirement to separately identify any allowance and penalty paid.
- Method of payment: Employers must pay wages by cash, cheque or electronic funds transfer (EFT) into an account nominated by the employee.
- Pay periods: Employers may determine the pay period as either weekly or fortnightly. Employers and employees (or the majority of employees) can agree to monthly pay periods. If monthly pay periods are agreed upon, payment must be made on the basis of two weeks in advance and two weeks in arrears.
- Day off coinciding with payday: If an employee is paid by cash or cheque and has a day off on payday because of the arrangement of their ordinary hours, the employer must pay the employee no later than the working day immediately after payday. Alternatively, payment can be made the day before payday if suitable arrangements are made.
- Payment under an averaging system: Employees working ordinary weekly hours under an averaging system may be paid based on the average number of ordinary hours worked to avoid fluctuating wage payments.
Payment on termination of employment
- Timing: Employers must pay employees their outstanding wages within 7 days after their employment ends. This includes:
- Wages for completed or partially completed pay periods up to the termination date.
- Any other amounts due under the award and the National Employment Standards (NES).
- Deductions and further orders: The Fair Work Commission can issue orders to delay payments, such as redundancy pay, under certain conditions.
Clerks Award allowances
Employers are required to pay employees the allowances specified in the Clerks Award. The table below offers a clear summary of the different allowances, their amounts, and the conditions for their payment:
Allowance type
Description
Amount/Details
First aid allowance
For employees with current first aid qualifications appointed to perform first aid duties
$15.48 per week
Clothing and footwear allowance
For employees required to launder a uniform that they’re required to wear during work hours.
For employees required to purchase the uniform, the employer should reimburse the employee for the cost of the clothing.
Reimbursement for the cost of uniforms and protective clothing. $3.55 per week for laundering uniforms (full-time) or $0.71 per shift (part-time/casual)
Meal allowance
For employees working more than 1.5 hours of overtime without 24 hours' notice
$19.43 for the first meal, plus an additional $15.56 if overtime exceeds 4 hours
Vehicle allowance
For employees using their own vehicle for employer’s business
$0.98 per kilometre for a motor car, $0.33 per kilometre for a motorcycle, up to 400 kilometres per week
Living away from home allowance
For employees required to temporarily work away from their usual place of employment
Allowance to cover fares, meals, accommodation, and travel time (up to eight hours in 24 hours)
For employees who start or finish work at a different time than usual, thereby lacking reasonable transportation options (and aren't provided with suitable transport by their employer at no cost.)
The employer must reimburse the employee for reasonable costs incurred using a commercial passenger vehicle between their home and workplace.
Clerks Award superannuation
Under the Clerks Award, here are the key points related to superannuation:
- Employer contributions: Employers must contribute to a superannuation fund to avoid the superannuation guarantee charge. The current superannuation guarantee rate is 11.5% of an employee's ordinary time earnings (OTE).
- Employee eligibility: Contributions are required for employees who are:
- Over 18 years old
- Under 18 years old and working more than 30 hours a week
- Fund selection: Employees can choose their superannuation fund. If no choice is made:
- Employers must check with the ATO for a stapled fund and contribute to it.
- If no stapled fund exists, employers can contribute to an approved fund nominated in the award, including, but not limited to CareSuper, AustralianSuper, SunSuper or HESTA
- Voluntary contributions: Employees can make additional contributions from post-tax wages. Contribution amounts can be adjusted with three months' written notice. Employers must pay these contributions within 28 days after the end of the month in which the deduction was made.
- Contributions during absence: Contributions continue during paid leave. For work-related injury or illness, contributions continue for up to 52 weeks if the employee receives workers' compensation or regular payments from the employer and remains employed.
Clarifications
To ensure accurate and compliant superannuation contributions, it's crucial to understand:
- Ordinary Time Earnings (OTE) accuracy: Identifying what counts as OTE is essential for correct super calculations and payments.
- $450 threshold: Employees who earn less than $450 before tax from an employer in a month generally aren’t entitled to superannuation contributions. The award doesn’t list any exceptions, meaning the standard rules for the Super Guarantee (SG) apply.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Clerks Award overtime
Overtime and penalty rates ensure fair compensation for employees working beyond their regular hours. The Clerks Award outlines specific conditions and rates for overtime. Note that different requirements apply to shiftworkers.
Conditions for overtime
Employers must pay overtime for:
- Hours exceeding the ordinary weekly hours.
- More than 10 ordinary hours in one day, excluding unpaid meal breaks.
- Hours worked outside the spread of ordinary hours.
- Overtime on a rostered day off that isn’t substituted or banked.
- For part-time employees, hours in excess of the agreed number of ordinary hours.
There are also specific rules for minimum overtime payment. Employees are entitled to a minimum of three hours at overtime rates for work performed on a Saturday after completing 38 hours over Monday to Friday, and a minimum of four hours’ pay for any overtime hours worked on a Sunday.
Overtime rates
Hours of overtime worked
per day
Overtime rate (full-time and part-time employees)
Overtime rate (casual employees)
Monday to Saturday—first 2 hours
150% of minimum hourly rate
175% of minimum hourly rate
Monday to Saturday—first 2 hours
200% of minimum hourly rate
225% of minimum hourly rate
Sunday—all day
200% of minimum hourly rate
225% of minimum hourly rate
Public holiday—all day
250% of minimum hourly rate
275% of minimum hourly rate
Example
Mark is a full-time employee with a regular hourly rate of $30 who works a standard 38-hour week. One week, he works an additional six hours beyond his regular hours, with two hours of overtime on Tuesday and 4 hours of overtime on Saturday.
- First two hours of overtime on Tuesday: 2 hours x $30 x 1.5 = $90
- Next four hours of overtime on Saturday: 4 hours x $30 x 2 = $240
- Total overtime pay: $90 + $240 = $330
Time off instead of payment for overtime
The Clerks Award offers flexibility through the option of time off instead of payment for overtime worked, subject to agreement between the employer and employee. This can be arranged as follows:
- Time off in lieu of payment: Employees can agree to take equivalent time off for overtime worked instead of direct payment.
- Agreement requirements: Any such agreement must specify the number of overtime hours worked, the agreement for time off instead of payment, and the conditions under which payment must be made if the employee requests it.
- Timeframe for taking time off: The time off must be taken within six months of the overtime worked, at a mutually agreed time.
- Record-keeping: Employers must keep a record of any agreements for time off instead of payment for overtime.
Additional considerations
- Rest period after overtime: Employees who work overtime must have at least a 10-hour break between the end of overtime and the start of their next shift. If this break isn’t provided, the employee must be paid at double time until such a break is provided.
- Overtime for casual employees: Casual employees are entitled to the overtime rates as specified above, in addition to their casual loading.
Clerks Award penalty rates
Penalty rates apply to work performed outside of ordinary hours that aren’t classified as overtime. These rates ensure that employees are fairly compensated for the additional demands and inconveniences of working outside standard hours. Note that different requirements apply to shiftworkers.
Day/Time
Full-time and
part-time employees
Casual employees
Example
Saturday (all day)
125% of the minimum hourly rate
150% of the minimum hourly rate
John is a part-time employee with a minimum hourly rate of $20. He works 4 hours on a Saturday. His pay is: 4 hours x $20 x 1.25 = $100.
Sunday (all day)
200% of the minimum hourly rate (and are entitled to not less than 4 hours' pay).
225% of the minimum hourly rate (and are entitled to not less than 4 hours' pay).
Emma is a full-time employee with a minimum hourly rate of $25. She works 5 hours on a Sunday. Her pay is: 5 hours x $25 x 2 = $250.
Public holidays
(all day)
250% of the minimum hourly rate
If an employee works on both a public holiday and the substituted day/part-day, the employee is entitled to choose which day the penalty rate applies to and is entitled to not less than 4 hours' pay.
275% of the minimum hourly rate
If an employee works on both a public holiday and the substituted day/part-day, the employee is entitled to choose which day the penalty rate applies to and is entitled to not less than 4 hours' pay.
Sarah is a casual employee with a minimum hourly rate of $30. She works 6 hours on a public holiday. Her pay is: 6 hours x $30 x 2.75 = $495.
Clerks Award leave and public holidays
Leave entitlements are a crucial component of employee rights under the Clerks Award. This section outlines the various types of leave available to employees, including annual leave, personal/carer’s leave, compassionate leave, parental leave, community service leave, and family and domestic violence leave.
Annual leave
Clause
Details
Example
Annual leave entitlement
In accordance with the NES:
Full-time employees are entitled to four weeks of annual leave per year of service. Part-time employees accrue annual leave on a pro-rata basis.
A full-time employee working 38 hours a week is entitled to four weeks of annual leave per year.
A part-time worker with a 19 hour week earns four weeks of leave paid at 19 hours per week.
Annual leave loading
17.5% loading on annual leave, paid at the employees ordinary base pay rate.
For employees with shift and weekend penalty rates,, they will receive a 17.5% loading or their regular shift penalties, whichever is greater.
James takes two weeks of annual leave. His regular weekly pay is $1000.
He receives an additional 17.5% loading: $1000 x 2 weeks x 17.5% = $350.
Shutdown period
Employers may temporarily shut down operations, requiring employees to take paid annual leave.
One month's notice must be provided, and written direction is required.
A company plans a shutdown for the first week of February. They notify employees on 1st January.
Employees must take paid annual leave during this period or, if they don’t have enough leave, can agree to take leave without pay.
Leave in advance
Employers and employees can agree in writing for the employee to take annual leave before it’s accrued.
The agreement must state the amount of leave and start date. It must also be signed by both parties and, if under 18, by a parent/guardian.
Kaity and her employer agree that she will take one week of annual leave in advance. They sign an agreement stating the leave will start on 15th August.
Cashing out annual leave
Employees can cash out annual leave if agreed in writing with the employer.
They must retain at least four weeks of accrued leave.
A maximum of two weeks can be cashed out in a 12-month period.
The agreement must state the amount cashed out and payment details.
Tom has six weeks of accrued leave. He agrees with his employer to cash out two weeks.
They sign an agreement stating the payment details and Tom’s remaining leave balance will be four weeks.
Excessive leave accruals
Employers and employees can agree in writing for the employee to take annual leave before it’s accrued.
The agreement must state the amount of leave and start date. It must also be signed by both parties and, if under 18, by a parent/guardian.
Kaity and her employer agree that she will take one week of annual leave in advance. They sign an agreement stating the leave will start on 15th August.
Other types of leave
The following leave entitlements are aligned with the NES, providing employees with necessary support in various situations:
- Personal/carer’s leave: Full-time employees receive 10 days of paid personal/carer’s leave annually. Part-time employees accrue this leave on a pro-rata basis.
- Compassionate leave: Employees are entitled to two days of compassionate leave for each eligible occasion, such as the death or serious illness of a close family member.
- Parental leave: Employees can take up to 12 months of unpaid parental leave, with the option to request an additional 12 months.
- Community service leave: Employees are entitled to unpaid leave for community service activities, including voluntary emergency management activities or jury duty.
- Family and domestic violence leave: Employees are entitled to 10 days of unpaid leave per year to address issues related to family and domestic violence.
Public holidays
Public holidays offer employees a chance to take time off work and are an important part of employee entitlements under the Clerks—Private Sector Award 2020. Below is an overview of how public holidays are managed according to the award and the NES:
Clause
Details
General entitlement
Public holiday entitlements are outlined in the NES. Employees (excluding casuals) are entitled to a paid day off on a public holiday.
Reasonable refusal
Employers may request an employee to work on a public holiday if the request is reasonable.
Employees have the right to refuse if the request is unreasonable or if their refusal is reasonable.
Substituting a public holiday
Employers and employees can mutually agree to substitute another day for a public holiday.
Substituting a part-day public holiday
Employers and employees can mutually agree to substitute another part-day for a part-day that would otherwise be a public holiday.
Penalty rates for work on public holidays
Any work performed on a public holiday must be compensated at the penalty rates specified.
Recognised public holidays
Public holidays recognised under the NES include New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day, among others.
Additional public holidays
States and territories can declare additional public holidays, which must be observed by employers.
Substitute holidays
If a public holiday falls on a weekend, a substitute public holiday is typically declared, often the following Monday.
Understanding shiftwork under the Clerks Award
Shiftwork under the Clerks - Private Sector Award 2020 refers to a working schedule where employees are rostered to work outside the standard business hours, often in rotating shifts that cover a 24-hour period. This includes afternoon, night, and permanent night shifts, as well as shifts on weekends and public holidays. The specific hours for each type of shift are as follows:
- Afternoon shift: A shift finishing after 7:00 PM and at or before midnight.
- Night shift: A shift finishing after midnight and at or before 7:00 AM.
- Permanent night shift: A shift where an employee works night shifts continuously for more than four consecutive weeks or on a regular and systematic basis.
Overtime for shiftwork
Overtime hours worked
Overtime rates (full-time and part-time employees)
Overtime rates (casual employees)
First 3 hours (in excess of ordinary weekly hours)
150% of minimum hourly rate
175% of minimum hourly rate
After 3 hours (in excess of ordinary weekly hours)
200% of minimum hourly rate
225% of minimum hourly rate
First 2 hours (in excess of ordinary daily hours)
150% of minimum hourly rate
175% of minimum hourly rate
After 2 hours (in excess of ordinary daily hours)
200% of minimum hourly rate
225% of minimum hourly rate
Saturday, Sunday, or public holiday
200% of minimum hourly rate
225% of minimum hourly rate
Note: employees required to work overtime on a Saturday, Sunday, or public holiday must be paid for a minimum of four hours if they aren’t ordinarily rostered to work that day and the work isn’t continuous with their ordinary shift.
Time off instead of payment for overtime for shiftwork
- Agreement: An employee and employer may agree in writing for the employee to take time off instead of being paid for overtime worked. Each overtime period must be covered by a separate agreement.
- Agreement details: The agreement must include the number of overtime hours, when they were worked, and must state that the employee can request payment instead of time off.
- Timeframe for taking time off: Time off must be taken within 6 months of the overtime worked, at a mutually agreed time.
- Payment in lieu of time off: If the employee requests payment for overtime not taken as time off, the employer must pay at the overtime rate applicable when the overtime was worked.
- Record keeping: The employer must keep a copy of any agreement as an employee record.
Rest period after working overtime for shiftwork
- Rest period: Employees should have at least eight consecutive hours off between shifts. If this rest period isn’t provided due to overtime, employees must be released from duty until they have had the required rest.
- Compensation for lack of rest: If the employee resumes work without the eight-hour rest, they must be paid at 200% of the minimum hourly rate until they’re released from duty for the rest period.
Penalty rates for shiftwork
Shift type
Penalty rate (% of minimum hourly rate)
Afternoon or night shift
115%
Permanent night shift
130%
Saturday, Sunday, or public holiday shift
150%
Note: Employees starting an ordinary shift between 11:00 PM and midnight on a Sunday or public holiday that extends into the next day aren’t entitled to the Sunday or public holiday penalty rate for the time worked on the next day.
Additional paid annual leave for certain shiftworkers
Employees regularly rostered to work on Sundays and public holidays in a business where shifts are continuously rostered 24 hours a day for 7 days a week are entitled to an additional week of paid annual leave as per the NES.
Clerks Award payment management tips
Effectively managing payments and entitlements under the Clerks Award can be complex. Here are some strategies to ensure compliance with minimum wage, payment of wages, overtime, penalty rates, leave, superannuation, and other entitlements:
- Keep up-to-date with award rates: Regularly review and stay informed about the minimum wage rates, overtime, and penalty rates as outlined in the award. These rates can change annually, so it's crucial to keep your knowledge current.
- Use reliable payroll software: Invest in dependable payroll software, such as Rippling, to automate calculations for wages, overtime, penalty rates, and superannuation. This can minimise errors and ensure timely payments.
- Maintain accurate record-keeping: Keep detailed and precise records of all employee payments, including regular wages, overtime, penalty rates, and leave entitlements. This is essential for compliance and resolving any disputes.
- Conduct regular audits: Periodically audit your payroll system to ensure compliance with the Clerks Award. This includes verifying that all payments align with the latest award requirements.
- Document employee agreements: Ensure all agreements regarding annual leave (including leave in advance and cashing out leave), and overtime (including time off in lieu) are documented and signed by both employer and employee.
- Provide training and support: Train your HR and payroll staff on the specifics of the Clerks Award. Ensure they understand the nuances of the award to manage payments and entitlements accurately.
- Seek consultation and legal advice: Regularly consult with industrial relations experts or legal advisors to stay informed about any changes in the award or employment laws that could impact your payroll practices.
- Manage leave effectively: Accurately track employee leave balances, including annual leave, personal/carer’s leave, compassionate leave, and other entitlements. Ensure employees are aware of their leave balances and entitlements.
- Ensure superannuation compliance: Make sure superannuation contributions are correctly calculated based on ordinary time earnings (OTE) and paid on time. Use payroll software to automate these calculations and payments.
- Communicate with employees: Maintain clear and open communication with employees about their pay, entitlements, and any changes to award conditions. This helps build trust and prevent misunderstandings.
- Stay informed about NES: Keep up to date with the National Employment Standards, which provide foundational guidelines that interact with the Clerks Award provisions.
Clerks Award nuances
The Clerks Award encompasses a broad range of clerical and administrative roles, making it important for employers to understand and comply with its specific provisions. Here are some key nuances to be aware of:
- Higher duties allowance: When an employee temporarily takes on a role or responsibilities at a higher pay grade, they’re entitled to a higher duties allowance.
Impact: In small teams where task sharing is common, employers mightn’t always recognise when an employee is performing higher duties. This oversight can lead to unforeseen back-pay obligations, resulting in significant financial liabilities and compliance issues. - Overtime for part-time employees: A significant oversight occurs when employers assume part-time employees aren’t entitled to overtime rates until they exceed full-time hours.
Impact: In reality, part-time employees are entitled to overtime rates for hours worked beyond their regular part-time schedule, as agreed upon in their contract. Failing to pay the correct overtime rates can result in underpayment, leading to back-payment obligations and potential legal action.
Simplifying Clerks Award pay, overtime and superannuation compliance with Rippling
Managing pay, overtime, superannuation, and annual leave under modern awards can be complex. Rippling's all-in-one platform streamlines these processes, ensuring accuracy, compliance and total peace of mind. Key features include:
- Accurate payroll calculations: Automatically calculate award pay rates, including penalty rates, allowances and overtime.
- Overtime management: Track and manage overtime hours according to award requirements.
- Superannuation compliance: Ensure correct calculation, reporting and payment of superannuation contributions.
- Integrated payroll systems: Seamlessly integrate with existing payroll systems.
- Real-time updates: Receive updates on changes to pay rates and superannuation rules for various awards.
With Rippling, you can do more than just meet award compliance requirements; you can exceed them. Take the tour or contact us today!
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
