Fitness Industry Award pay rates, allowances, and overtime
The Fitness Industry Award 2020 sets the employment conditions for those working in the fitness sector, ensuring they receive fair compensation and work under suitable conditions. This award covers a diverse range of roles within the fitness industry, establishing vital standards for these employees.
This overview looks at the fundamental aspects of the Fitness Industry Award, including minimum base pay rates, wage payment protocols, various allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Understanding these elements is important for maintaining compliance and fostering a fair workplace environment.
Note: The information provided in this article is accurate as of 10/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Fitness Industry Award 2020 for the most current information.
Fitness Industry Award minimum pay rates
Understanding the minimum pay rates is essential to ensure employees in the fitness industry are fairly compensated. The table below offers a detailed summary of the minimum rates set by the Fitness Award, covering various roles within the fitness sector.
For full-time employees, the minimum weekly rate is applicable, while part-time employees are paid at the minimum hourly rate. Casual employees must receive a loading of 25% on top of the minimum hourly rate for each hour worked.
Description
Rates/details
Employee
Adult employees
Employees aged 21
and over
Level 1: $891.50/week ($23.46/hour)
Level 2: $915.90/week ($24.10/hour)
Level 3: $980.40/week ($25.80/hour)
Level 3A: $1032.30/week ($27.17/hour)
Level 4: $1074.70/week ($28.28/hour)
Level 4A:
$1126.30/week ($29.64/hour)
Level 5: $1187.20/week ($31.24/hour)
Level 6: $1176.90/week ($30.97/hour)
Level 7: $1222.80/week ($32.18/hour)
A 33-year-old senior fitness instructor will be paid $1187.20 per week or $31.24 per hour.
Junior employees
Employees aged under 21
Under 17: 55% of adult employee rate
17 years: 65% of adult employee rate
18 years: 75% of adult employee rate
19 years: 85% of adult employee rate
20 years: 100% of adult employee rate
An 18-year-old grade pool lifeguard will be paid $735.3/week ($19.35/hour).
Higher duties
For employees who perform duties of a classification higher than their ordinary classification
When an employee is assigned by their employer to carry out duties at a higher classification than their usual role, they must be compensated at the rate applicable to the higher classification for the duration of the time spent performing those duties.
A Level 1 employee who’s assigned to perform Level 3 duties for two hours will be paid the Level 3 rate of $25.80 for those two hours.
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 90% capacity will be paid 90% 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.
Fitness Award payment of wages
The Fitness Industry Award outlines specific guidelines for how wages should be paid to employees, including the determination of pay periods, acceptable payment methods, and protocols for handling payments on termination. Understanding these provisions helps both employers and employees manage their financial expectations and obligations effectively.
- Pay period: Wages must be paid weekly or fortnightly. Employers and the majority of employees may agree to monthly payments.
- Pay method: Wages can be paid by cash, cheque, or electronic funds transfer into the bank or financial institution account nominated by the employee, as determined by the employer.
- Day off on payday: If an employee paid by cash or cheque has a rostered day off that coincides with payday, they must be paid no later than the working day immediately following payday. If possible, wages may be paid on the working day before payday.
- Absences from duty under an averaging system: When an employee works beyond the daily average hours, they accrue a credit for each additional day worked. Conversely, employees incur a debit for each day they are absent, with exceptions for paid leave, workers' compensation, or jury service. For partial day absences, a proportionate debit’s applied based on the amount of time the employee is absent.
- Termination payments: Employers must pay an employee no later than seven days after termination, covering all wages and entitlements due. This includes any complete or incomplete pay periods up to the end of the day of termination and any other amounts due under the award and the NES.
Fitness Industry Award allowances
The Fitness Industry Award outlines specific allowances designed to ensure that employees are fairly compensated for any additional expenses incurred while carrying out their duties. The main allowances provided under this award include:
Allowance type
Amount/details
Meal allowance
For employees required to work overtime
$14.59 for a meal if working overtime for more than one and a half hours immediately after their ordinary hours of work, unless the employer provides a meal.
Split shift allowance
For employees working a rostered split shift
$16.67 per day extra, and an additional expense-related allowance of $2.15 per day for excess fares.
First aid allowance
For employees rostered to be on first aid duty
$3.14 extra per day when assigned to first aid duties.
Vehicle allowance
For employees using their own vehicle for work purposes
$0.98 per kilometre for a motor vehicle; $0.32 per kilometre for a motorcycle.
Uniforms and protective clothing
For employees required to wear specific clothing
Reimbursement for the reasonable cost of purchasing and laundering or dry cleaning the clothing, unless provided and cleaned by the employer.
Travelling time and fares
For employees required to travel between work locations
Reimbursement for all fares necessarily incurred. All time spent travelling is deemed working time and paid at the appropriate rate.
Sleepover allowance
For employees required to sleep at the workplace and be available for urgent situations
Payment equivalent to three hours at the ordinary rate for an eight-hour sleepover, covering up to two hours of necessary work during the sleepover period.
Any work exceeding two hours is paid at overtime rates in addition to the sleepover allowance. Reasonable steps must be taken to ensure a proper sleeping environment.
Fitness Award superannuation
The Fitness Industry Award specifies the superannuation obligations for employers to ensure employees receive their entitlements in line with Australian superannuation legislation and the NES.
- Superannuation guarantee: Under the Superannuation Guarantee (Administration) Act 1992, employers must make minimum superannuation contributions on behalf of their employees. As of 1st July 2024, the superannuation guarantee rate is 11.5% of an employee’s ordinary time earnings (OTE). This rate will increase to 12% by 1st July 2025.
- Employee eligibility: Under the NES, employees are eligible for superannuation contributions if they earn $450 or more (before tax) in a calendar month and are over 18 years old. Employees under 18 are eligible if they work more than 30 hours per week.
- Superannuation fund: Contributions should be made to one of the specified superannuation funds unless legislation requires contributions to a different fund. Accepted funds include AustralianSuper, CareSuper, First State Super, Nationwide Superannuation Fund, Sunsuper, Hostplus, and others listed in the award.
- Paid leave and absence: Employers must continue to make superannuation contributions during periods of paid leave. For work-related injury or illness, contributions must be made for up to 52 weeks if the employee receives workers' compensation or regular payments from the employer and remains employed.
- Voluntary contributions: Employees can authorise their employer to make additional voluntary contributions from their post-tax wages to the same superannuation fund. Employees can adjust the contribution amount with written notice. Employers must pay these contributions within 28 days after the end of the month in which the deduction was made.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Fitness Industry Award overtime and penalty rates
Overtime and penalty rates ensure employees receive fair compensation for working beyond their regular hours. The Fitness Industry Award specifies the conditions and rates for overtime. It's important to note that overtime worked on any given day is calculated independently from overtime worked on other days.
Conditions for overtime
- Outside standard hours: Any hours worked outside the standard spread of hours specified in the employee's schedule.
- Exceeding weekly average: Any hours worked beyond an average of 38 hours per week, calculated over a four-week period.
- Daily limit: Any hours worked exceeding 10 hours in a single day.
- Part-time employees: Any hours worked in excess of the agreed hours stated in their employment agreement or any subsequent variations to those hours.
Overtime rates
Hours of overtime worked per day
Overtime rate
Monday to Saturday—first two hours
150% of minimum hourly rate
Monday to Saturday—after two hours
200% of minimum hourly rate
Sunday—all time worked
200% of minimum hourly rate
Rostered day off – all time worked
200% of minimum hourly rate
Public holiday—all day
250% of minimum hourly rate
Additional notes
- Break between shifts: Employees are entitled to a minimum 10-hour break between shifts. If required to resume work without this break, they must be paid at 200% of the minimum hourly rate until a 10-hour break is taken. However, this doesn’t apply if the employee has worked three consecutive hours or less before the break.
- Casual loadings: Casual loadings don’t apply to overtime hours worked.
- Time off instead of payment for overtime:
- Agreement: Employers and employees can agree in writing for the employee to take time off instead of being paid for overtime. Each agreement must specify the number of overtime hours, when they were worked, and include a clause that allows the employee to request payment for any overtime not taken as time off.
- Equivalence: The time off is equivalent to the number of overtime hours worked (e.g., two hours of overtime equals two hours of time off).
- Time frame: Time off must be taken within six months of the overtime being worked, at a time agreed upon by both the employer and employee.
- Request for payment: If the employee requests payment for overtime instead of taking time off, the employer must pay the overtime in the next pay period at the applicable overtime rate.
- Record keeping: Employers must keep a copy of the agreement as an employee record.
- No undue pressure: Employers must not exert undue influence on employees regarding the decision to take time off instead of payment for overtime.
- Termination: If the employment ends before the time off is taken, the employer must pay the employee for the overtime at the applicable rate.
Penalty rates
Employees must be paid at the following rates for all ordinary hours worked on Saturdays, Sundays and public holidays:
Full-time and part-time employees (% of minimum hourly rate)
Casual employees (% of minimum hourly rate)
Saturdays
125% of minimum hourly rate
150% of minimum hourly rate
Sundays
150% of minimum hourly rate
150% of minimum hourly rate
Public holidays
250% of minimum hourly rate
275% of minimum hourly rate
Fitness Award leave and public holidays
Leave entitlements are an important aspect of employee benefits under the Fitness Industry Award. This section details the various types of leave available to employees, such as annual leave, personal/carer’s leave, compassionate leave, parental leave, community service leave, and family and domestic violence leave.
Annual leave
Details
Example
Annual leave entitlement
Full-time employees earn four weeks of annual leave for each year of service. Part-time employees accumulate leave proportionately based on their hours worked.
A full-time employee working 38 hours per week earns four weeks of annual leave annually. A part-time employee working 22 hours per week accumulates four weeks of leave at 22 hours per week.
Payment for period of annual leave
Employees must be paid their regular wages during their leave.
If an employee's weekly wage is $1,350, they will receive $1,350 for each week of annual leave taken.
This amount is then subject to annual leave loading.
Annual leave loading
Employees receive an additional 17.5% of their wages while on annual leave.
Scott takes two weeks of annual leave. His regular weekly wage is $1,500. He receives an additional 17.5% loading: $1,500 x 2 weeks x 17.5% = $525.
Shutdown period
Employers may temporarily close operations, requiring employees to use paid annual leave.
Employees must receive 28 days' notice in writing.
A company plans a shutdown for the first week of August. They notify employees on 1st July. 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 detail the amount of leave and the start date and be signed by both parties.
Saskia and her employer agree that she’ll take one week of annual leave in advance. They sign an agreement stating the leave will begin on 1st June.
Cashing out annual leave
Can realize a profit or incur financial losses from their work
Does not bear an economic risk
Excessive leave accruals
Can freely provide services to multiple organizations
Generally works for their employer exclusively
Other types of leave
The following leave entitlements are consistent with the NES, offering essential support to employees in various circumstances:
- Personal/carer’s leave: Full-time employees are entitled to 10 days of paid personal/carer's leave annually. This leave can be utilised for personal illness or to care for a sick family member. Part-time employees accrue this leave on a proportional basis.
- Compassionate leave: Employees are entitled to two days of compassionate leave for each occasion when an immediate family member or household member dies or suffers a life-threatening illness or injury.
- Parental leave: Eligible employees can take up to 12 months of unpaid parental leave for the birth or adoption of a child. They may also request an additional 12 months, which can only be refused on reasonable business grounds.
- Community service leave: Employees can take leave for eligible community service activities, such as voluntary emergency management activities or jury duty. This leave is unpaid, except for jury duty, where make-up pay may be provided.
- Family and domestic violence leave: Employees are entitled to 10 days of paid family and domestic violence leave each year. This leave can be used for activities such as seeking medical attention, obtaining services from a support organisation, or attending court hearings.
Public holidays
Public holidays provide employees with a valuable break from their usual work duties and are an essential part of employee benefits under the Fitness Industry Award. Here's an overview of how public holidays are managed according to the award and the NES:
Clause
Details
General entitlement
According to the NES, employees (excluding casuals) are entitled to a paid day off on a public holiday.
Reasonable refusal
Employers can 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.
Minimum engagement for work on public holidays
Employees required to work on a public holiday must be engaged or paid for at least four hours (and compensated at the public holiday penalty rates).
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.
Fitness Industry Award payment management tips
Handling payments and entitlements under the Fitness Industry Award can be tricky. Here are some strategies to ensure compliance with minimum wage, wage payments, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay up-to-date with award rates: Regularly check for updates on minimum wages, overtime, and penalty rates as specified in the award, as these can change annually.
- Implement efficient payroll software: Invest in reliable payroll software to automate the calculation of wages, overtime, penalty rates, and superannuation, reducing errors and ensuring timely payments.
- Maintain detailed records: Maintain thorough records of all employee payments, including wages, overtime, penalty rates, and leave entitlements to ensure compliance and address any disputes.
- Undertake ongoing payroll audits: Conduct periodic audits of your payroll system to ensure it complies with the latest award requirements.
- Document all employee agreements: Ensure all agreements related to annual leave (including leave in advance and cashing out leave) and overtime (including time off in lieu) are documented and signed by both the employer and employee.
- Provide adequate training: Train your HR and payroll staff on the specifics of the Fitness Industry Award to manage payments and entitlements accurately.
- Consult with experts: Regularly consult with industrial relations experts or legal advisors to stay informed about changes in the award or employment laws.
- Efficiently manage leave: Track employee leave balances accurately, 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 accurately calculated based on ordinary time earnings (OTE) and paid on time. Use payroll software to automate these calculations and payments.
- Communicate transparently with employees: Maintain open communication with employees regarding their pay, entitlements, and any changes to award conditions to build trust and prevent misunderstandings.
- Stay informed about NES requirements: Keep updated with the National Employment Standards, which provide foundational guidelines that interact with the provisions of the Fitness Industry Award.
Fitness Award nuances
Understanding the specifics of the Fitness Industry Award is crucial for employers to ensure they are compliant and avoid any potential issues. Here are some important details that can be easy to overlook:
- Shift break requirements: The Fitness Industry Award specifies that employees must have a minimum 10-hour break between shifts. If an employee is required to resume work without a 10-hour break, they must be paid at 200% of the minimum hourly rate until they have had a break of at least 10 consecutive hours.
Impact: Employers might overlook this requirement, leading to non-compliance and potential financial penalties. Proper scheduling is necessary to ensure compliance with the 10-hour break rule.
- Public holiday penalty rates for casual employees: Casual employees in the fitness industry must be paid at 275% of the minimum hourly rate for all hours worked on a public holiday, a higher rate than many other industries.
Impact: Failing to pay the correct public holiday rates for casual employees can lead to significant underpayments and legal issues. Employers must be diligent in applying the correct penalty rates for public holidays to avoid financial penalties and ensure fair compensation for casual employees.
- No casual loading on overtime: For casual employees, the casual loading doesn’t apply to overtime hours. This means that, while casual employees typically receive a higher base rate (inclusive of casual loading), this additional loading is excluded when calculating overtime pay
Impact: Employers need to accurately calculate overtime for casual employees to avoid overpayments or underpayments. Misunderstanding this rule can lead to payroll discrepancies and potential disputes.
Simplifying Fitness Industry Award pay, overtime and superannuation compliance with Rippling
Managing payroll, overtime, superannuation, and annual leave according to modern awards can be complex. Rippling's all-encompassing platform streamlines these processes, guaranteeing accuracy, compliance, and simplicity. Notable features include:
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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.
