Australia: Pay and benefits

Original and updating authors: Shana Schreier-Joffe, Dean Tolkin and Tiffany Wu, Keypoint Law

See the legal services provided by the authors of International > Australia, including any discounts/offers for subscribers.

Summary

• The pay of employees is governed by their employment contract, subject to the national minimum wage and any applicable modern award or enterprise agreement. (See General)
• Employees must be paid at least monthly in cash, by cheque, money order or postal order, or by an electronic funds transfer (or a combination of these methods) and employers must provide their employees with payslips. (See Payment of wages)
• An employer can deduct sums from an employee's pay only if this is authorised by the employee for their benefit, or if it is allowed by a law or court order, or by an applicable modern award or enterprise agreement. (See Deductions)
• The Fair Work Commission may make orders to ensure equal remuneration for men and women for work of equal or comparable value. (See Equal pay) 
• In many sectors and occupations, minimum wage rates are set by legally binding modern awards. (See Minimum wages)
• The public social security system pays an "age pension" to individuals aged 65 or over who meet a means test and residency conditions. (See Pensions)
• Employers must deduct income tax and a Medicare levy from their employees' wages. (See Income tax and social security)
• Employees are generally entitled to 10 days' paid sick leave each year. (See Sick pay)
• Non-monetary benefits provided by the employer, such as discounted loans, are not conventional and may give rise to a fringe benefit tax in respect of such benefits. (See Benefits in kind)