General Retail Industry Award pay rates, allowances, and overtime
The General Retail Industry Award 2020 sets the guidelines for employment conditions for workers in the retail sector, ensuring fair wages and proper working conditions. This award applies to various roles within the retail industry, including sales assistants, cashiers, store managers, and visual merchandisers, establishing essential standards for these employees.
This article examines the key components of the General Retail Industry Award, such as minimum wage rates, payment methods, allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Understanding these elements is essential for maintaining compliance and ensuring 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 General Retail Industry Award 2020 for the most current information.
General Retail Industry Award minimum pay rates
Understanding the minimum wage rates is essential for employers to ensure equitable pay. The following table provides a comprehensive overview of the minimum rates under the General Retail Industry Award, covering various roles within the retail sector.
For full-time employees, the minimum weekly rate applies, while part-time employees should be paid the minimum hourly rate. Casual employees are entitled to a 25% loading on top of the minimum hourly rate for each hour worked.
Category
Description
Rates/Details
Example
Adult employees
Employees aged 21 and over
Level 1: $974.80/week ($25.65/hour)
Level 2: $997.10/week ($26.24/hour)
Level 3: $1012.60/week ($26.65/hour)
Level 4: $1032.30/week ($27.17/hour)
Level 5: $1074.70/week ($28.28/hour)
Level 6: $1090.30/week ($28.69/hour)
Level 7: $1145.00/week ($30.13/hour)
Level 8: $1191.50/week ($31.36/hour)
A 30-year-old stock supervisor classified as Level 4 will be paid $1032.30 per 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 (≤ 6 months): 90% of adult employee rate
20 years (> 6 months): 100% of adult employee rate
An 18-year-old junior legal assistant will be paid 70% of the Level 1 adult rate: $682.36 per week or $17.96 per hour.
Junior apprentices (4-year apprenticeship)
Apprentices under 21 years of age
1st year (no Year 12): 50% of Level 4 rate
1st year (with Year 12): 55% of Level 4 rate
2nd year (no Year 12): 60% of Level 4 rate
2nd year (with Year 12): 65% of Level 4 rate
3rd year (no Year 12): 80% of Level 4 rate
3rd year (with Year 12): 80% of Level 4 rate
4th year (no Year 12): 90% of Level 4 rate
4th year (with Year 12): 90% of Level 4 rate
A 2nd-year junior apprentice with Year 12 will earn $671.00 per week (65% of $1032.30).
Junior apprentices (3-year apprenticeship)
Apprentices under 21 years of age
1st year (no Year 12): 50% of Level 4 rate
1st year (with Year 12): 55% of Level 4 rate
2nd year (no Year 12): 60% of Level 4 rate
2nd year (with Year 12): 65% of Level 4 rate
3rd year (no Year 12): 80% of Level 4 rate
3rd year (with Year 12): 80% of Level 4 rate
A 1st-year junior apprentice with Year 12 will earn $567.77 per week (55% of $1032.30).
Adult apprentices
Apprentices aged 21 and over
1st year: 80% of Level 4 or relevant apprentice year rate
2nd year onwards: lowest adult classification rate or relevant apprentice rate, whichever is higher
A 1st-year adult apprentice will earn at least $825.84 per week (80% of $1032.30).
Higher duties
For employees performing duties of a higher classification
For more than 2 hours on any day or shift: The minimum hourly rate for the higher classification for the entire day or shift
For 2 hours or less on any day or shift: The minimum hourly rate for the higher classification for the time worked
A retail employee performing higher duties of a supervisor (Level 4) for more than 2 hours will be paid $27.17 per hour for the entire shift.
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 60% capacity will be paid 60% 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 retail employee performing higher duties of a supervisor (Level 4) for more than 2 hours will be paid $27.17 per hour for the entire shift.
General Retail Award payment of wages
Ensuring timely and accurate payment of wages is important under the General Retail Award. Here’s the key information you need to know:
General payment of wages
- Pay records and payslips: Fair Work Regulations 2009 require pay records and payslips to separately identify any allowance paid.
- Method of payment: Wages must be paid by cash, cheque, or electronic funds transfer (EFT) into an account nominated by the employee.
- Pay periods: Employers can determine the pay period as either weekly or fortnightly. If employees at Retail Employee Level 4 or above were paid monthly before 1 January 2010, this can continue.
- Pay day: Wages must be paid on a regular pay day. Employees must be notified in writing about their regular pay day with any change to the day requiring four weeks’ written notice.
Payment on termination of employment
- Timing: Employers must pay employees their outstanding wages within seven 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.
General Retail Industry Award allowances
The General Retail Award specifies various allowances to ensure employees receive fair compensation for extra expenses related to their job duties. Below are the main allowances available under this award:
Allowance type
Description
Amount/Details
Meal allowance
For employees required to work overtime
$22.99 for the first meal if overtime exceeds one hour.
An additional $20.85 if overtime exceeds four hours.
Special clothing allowance
For employees required to wear a special uniform or clothing
Reimbursement for the cost of purchasing required clothing. Laundry allowance: $6.25/week for full-time, $1.25/shift for part-time or casual employees.
Vehicle allowance
For employees using their own vehicle for work
$0.98 per kilometre travelled
Transport allowance (overtime)
For employees working overtime when reasonable transport home is unavailable
Reimbursement for the cost of commercial transport between work and home.
Cold work allowance
For employees working in cold chambers or stocking refrigerated storage
$0.35 per hour. Additional $0.54 per hour if the temperature is below 0°C.
First aid allowance
For employees who have a current first aid qualification and are appointed by the employer to perform first aid duties
$13.42 per week
Recall allowance
For employees who are recalled to work by the employer after completing their normal roster or on a day off
Unless otherwise agreed, the employer must pay the employee the greater of either the time from when they leave home until they return or 3 hours at the appropriate rate.
Liquor licence allowance
For employees who hold a liquor licence under a relevant State or Territory laws
$32.00 per week
Broken Hill allowance
For employee who perform their duties at a workplace within the County of Yancowinna in New South Wales (Broken Hill)
$16.00 per hour
General Retail Award superannuation
Ensuring correct superannuation contributions is a critical aspect of compliance under the General Retail Industry Award 2020. Below are the key provisions and requirements:
- 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
- Employer contributions: Employers must contribute to an employee's superannuation fund to avoid paying the superannuation guarantee charge. The current superannuation guarantee rate is 11.5% of the employee's ordinary time earnings (OTE).
- 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 The Retail Employees Superannuation Trust (REST), Statewide Superannuation Trust, MTAA Superannuation Fund and Sunsuper.
- Voluntary contributions: Employees can authorise their employer in writing to make additional contributions from their post-tax wages to the same fund. Employees can adjust these contributions with three months' written notice.
- Contributions during absence: Employers must continue to make superannuation contributions during periods of paid leave or for up to 52 weeks during a work-related injury or illness if the employee is receiving workers' compensation or regular payments from the employer.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
General Retail Industry Award overtime and penalty rates
Overtime and penalty rates ensure fair compensation for employees working beyond their regular hours. The General Retail Award outlines specific conditions and rates for overtime. Note that different requirements apply to shiftworkers.
Conditions for overtime
Employers must pay overtime for:
- Hours worked beyond 38 ordinary hours per week.
- Any hours worked outside the ordinary hours of work, which are between 7:00 AM and 9:00 PM on weekdays, 7:00 AM and 6:00 PM on Saturdays, and 9:00 AM to 6:00 PM on Sundays.
- Hours in excess of 11 on any one day or 9 hours on any other day of the week.
- Part-time employees for hours worked beyond their agreed 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 12:00 PM and any time worked on a Sunday, as well as on public holidays.
Overtime rates
Hours of overtime worked per day
Overtime rate (full-time and part-time employees)
Overtime rate (casual employees)
Monday to Saturday—first 3 hours
150% of minimum hourly rate
175% of minimum hourly rate
Monday to Saturday—after 3 hours
200% of minimum hourly rate
225% of minimum hourly rate
Saturday after 12.00 PM and Sunday
200% of minimum hourly rate
225% of minimum hourly rate
Public holiday—all day
250% of minimum hourly rate
275% of minimum hourly rate
Time off instead of payment for overtime
Employees and employers may agree in writing for time off instead of payment for overtime. The period of time off is equivalent to the overtime payment. Time off must be taken within six months from when the overtime is worked. If not taken, the employee must be paid for the overtime in the next pay period.
Additional considerations
- Rest period after overtime: Employees who work overtime must have at least a 12-hour break between the end of the overtime period and the start of their next shift. With the employee's written agreement, this break can be reduced to a minimum of 10 hours. If the proper rest period isn’t provided, the employee must be paid at double time until such a break is granted.
- Overtime for casual employees: Casual employees are entitled to the specified overtime rates in addition to their casual loading.
Penalty rates
Below is a summary of the applicable penalty rates:
Time of ordinary hours worked
Full-time and part-time employees
Casual employees (inclusive of casual loading)
Monday to Friday—after 6.00 pm
125% of minimum hourly rate
150% of minimum hourly rate
Saturday—all ordinary hours
125% of minimum hourly rate
150% of minimum hourly rate
Sunday—all ordinary hours
150% of minimum hourly rate
175% of minimum hourly rate
Public holiday—all ordinary hours
225% of minimum hourly rate
250% of minimum hourly rate
For full-time or part-time employees, an alternative arrangement can be made where the employee is paid at their minimum hourly rate for hours worked on a public holiday, and an equivalent amount of paid time is added to their annual leave. This time off must be taken within 28 days of the public holiday or be paid out.
General Retail Award leave and public holidays
Leave entitlements are a crucial component of employee rights under the General Retail Industry 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
Clause
Details
Annual leave entitlement
According to the NES:
Full-time employees are entitled to four weeks of annual leave per year. Part-time employees earn annual leave on a pro-rata basis.
Annual leave loading
Employees receive a 17.5% loading on their wages during annual leave.
Shutdown period
Employers may temporarily shut down operations, requiring employees to take paid annual leave.
Employees must be given 28 days' written notice.
Leave in advance
Employers and employees can agree in writing for the employee to take annual leave before it’s accrued. The agreement must specify the amount of leave and the start date, and be signed by both parties.
Cashing out annual leave
Employees can cash out annual leave if there is a written agreement 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.
Excessive leave accruals
More than eight weeks of accrued leave is considered excessive.
Employers and employees should discuss and agree on reducing excessive leave.
Employers can direct employees to take leave if no agreement is reached.
Employees can request to take leave if they have excessive accruals and the employer hasn't provided a direction.
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 are entitled to 10 days of paid personal/carer’s leave each year. Part-time employees earn this leave on a proportional basis.
- Compassionate leave: Employees can take two days of compassionate leave for each qualifying event, such as the death or severe illness of a close family member.
- Parental leave: Employees are allowed up to 12 months of unpaid parental leave, with the possibility to request an additional 12 months.
- Community service leave: Employees can take unpaid leave for community service activities, including volunteer emergency management duties or jury duty.
- Family and domestic violence leave: Employees are entitled to 10 days of unpaid leave annually to deal with issues related to family and domestic violence.
Public holidays
Public holidays offer employees essential rest periods and are an important aspect of employee rights under the General Retail 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.
Penalty rates for work on public holidays
Any work performed on a public holiday must be compensated at the penalty rates specified in the award.
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 General Retail Industry Award
The General Retail Industry Award includes specific provisions for employees engaged in shiftwork. This section outlines the essential rules and requirements for shiftwork, including definitions, rates of pay, and annual leave.
Definitions
- General employees (excluding baking production employees): A shift that starts at or after 6:00 PM on one day and before 5:00 AM on the following day.
- Baking production employees: A shift starting at or after midnight and before 6:00 AM.
- Exclusions: Shiftwork doesn’t include shifts that start and finish within the standard span of ordinary hours specified in the award.
All hours worked during a shift must be continuous. Time between the start and end of a shift counts as hours worked and must be compensated. The overtime rates for shiftworkers are the same as for non-shiftworkers.
All hours worked during a shift must be continuous. Time between the start and end of a shift counts as hours worked and must be compensated. The overtime rates for shiftworkers are the same as for non-shiftworkers.
General shiftwork rates
Shift type
Full-time and part-time rate
(% of minimum hourly rate)
Casual rate (% of minimum hourly rate, inclusive of casual loading)
Midnight Sunday to midnight Friday
130%
155%
Saturday
150%
175%
Sunday
175%
200%
Baking production employees
Shift type
Full-time and part-time rate
(% of minimum hourly rate)
Casual rate (% of minimum hourly rate, inclusive of casual loading)
Early morning (2:00 AM to 6:00 AM)
130%
155%
Night (midnight to 2:00 AM)
150%
175%
Public holiday shifts
Note, a shift beginning on a public holiday and ending on a non-public holiday is considered a public holiday shift.
Shift type
Full-time and part-time rate
(% of minimum hourly rate)
Casual rate (% of minimum hourly rate, inclusive of casual loading)
Public holiday
225%
250%
Work on a rostered day off
When an employee works on a rostered day off, the compensation is as follows:
Day
Payment rate
Monday to Saturday
150% of minimum hourly rate for the first 3 hours; 200% of minimum hourly rate for hours beyond that
Sunday
200% of minimum hourly rate
Public holiday
250% of minimum hourly rate
Additional provisions
- Minimum payment: Shiftworkers called in to work on their rostered day off are entitled to a minimum payment of four hours.
- Agreement to substitute: Employers and employees can agree to substitute another day for the rostered day off to avoid overtime payments, ensuring it’s in line with the award's regulations.
- Notification: Employers must provide adequate notice if a shiftworker is required to work on their rostered day off.
Time off instead of payment for overtime for shiftwork
- Agreement: An employer and employee may agree in writing for the employee to take time off instead of being paid for overtime. Each instance of overtime must be covered by a separate agreement.
- Agreement details: The agreement must specify the number of overtime hours worked, when they were worked, and confirm that the employee can request payment instead of time off.
- Timeframe for taking time off: Time off must be taken within six 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 applicable overtime rate.
- 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 ten 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 ten-hour rest, they must be paid at 200% of the minimum hourly rate until they’re released from duty for the rest period
Additional paid annual leave for certain shiftworkers
Employees who are regularly rostered to work on Sundays and public holidays in businesses 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.
General Retail Award payment management tips
Effectively managing payments and entitlements under the General Retail 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: Stay informed about changes to minimum wages, overtime, and penalty rates as outlined in the award, as these can be updated annually.
- Use reliable payroll software: Employ robust payroll software to automate wage calculations, overtime, penalty rates, and superannuation, reducing the risk of errors and ensuring prompt payments.
- Maintain accurate record-keeping: Maintain thorough records of all employee payments, including wages, overtime, penalty rates, and leave entitlements, to ensure compliance and facilitate dispute resolution.
- Conduct regular audits: Conduct routine audits of your payroll system to verify compliance with the most recent award requirements.
- Document employee agreements: Record all agreements related to annual leave (such as leave in advance and cashing out leave) and overtime (like time off in lieu), ensuring they’re signed by both employer and employee.
- Provide training and support: Provide your HR and payroll teams with training on the General Retail Industry Award to ensure accurate management of payments and entitlements.
- Seek consultation and legal advice: Regularly seek advice from industrial relations experts or legal professionals to stay updated on changes to the award or employment laws.
- Manage leave effectively: Keep precise records of employee leave balances, including annual leave, personal/carer’s leave, compassionate leave, and other entitlements. Make sure employees are aware of their leave balances and entitlements.
- Ensure superannuation compliance: Accurately calculate superannuation contributions based on ordinary time earnings (OTE) and ensure they’re paid on time. Use payroll software to automate these calculations and payments.
- Communicate with employees: Maintain open communication with employees about their pay, entitlements, and any changes to award conditions, fostering trust and preventing misunderstandings.
- Stay informed about NES: Keep yourself informed about the National Employment Standards, which provide fundamental guidelines that interact with the provisions of the General Retail Industry Award.
General Retail Industry Award nuances
The General Retail Industry Award encompasses various roles within the retail sector, necessitating employers to comprehend and comply with its specific provisions. Here are two major nuances to be aware of:
- Complex overtime provisions: Overtime rates under the General Retail Industry Award vary significantly depending on when the overtime is worked. For example, overtime worked on weekdays is paid at 150% of the ordinary rate for the first three hours and 200% thereafter, while overtime worked on weekends attracts higher rates from the outset.
Impact: Mismanagement of overtime calculations can lead to substantial payroll discrepancies and potential non-compliance. Incorrectly calculating weekday versus weekend overtime can result in either overpayments or underpayments, risking both financial penalties and employee dissatisfaction. Ensuring precise calculation and application of these rates is crucial to maintaining compliance and financial stability. - Penalty rates for odd hours: Retail employees are entitled to penalty rates for working during evenings, weekends, and public holidays. For instance, work performed on a Sunday is paid at 150% of the ordinary rate, and public holidays can attract rates up to 225%. The nature of retail hours, which often include late nights and irregular shifts, adds complexity to staying on top of these rates.
Impact: Failure to correctly apply these penalty rates can significantly inflate payroll costs and lead to non-compliance. Inaccurate application of evening, weekend, or public holiday rates can result in financial liabilities and possible legal action. Proper budgeting and accurate application of these rates are essential to prevent financial strain and ensure legal compliance.
Simplifying General Retail Industry 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 hours with Rippling’s payroll system.
- Automatic 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.
