Educational Services (Teachers) Award pay rates, allowances, and overtime
The Educational Services (Teachers) Award 2020 establishes fair salaries and working conditions for several positions across the educational landscape. This award spans a breadth of educational roles, safeguarding the rights of educators and administrative personnel.
This guide delves into key components of the Educational Services (Teachers) Award, covering areas such as minimum pay rates, payment of wages, allowances, superannuation, various types of leave, and recognised holidays. A deep grasp of these elements is essential for maintaining legal compliance and promoting fairness within educational institutions.
Note: The information provided in this article is accurate as of 22/07/2024. As award conditions and rates are subject to change, please ensure you refer to the latest version of the Educational Services (Teachers) Award 2020 for the most current information.
Educational Services (Teachers) Award minimum pay rates
This section outlines the minimum salary and wage structure for full-time, part-time, and casual employees, providing clarity on financial entitlements based on role and experience. It's imperative for educational institutions and staff to comprehend these guidelines to uphold fair compensation practices and maintain compliance with legislative requirements.
Full-time employees
Classification
Criteria
Minimum rate (preschools and schools)
Minimum rate (long day care centres)
Level 1
Graduate teacher and all other teachers, including those holding provisional or conditional accreditation/
registration
$1,342.40 per week
or
$70,045 per year
$1,396.10 per week
or
$72,847 per year
Level 2
Teacher with proficient accreditation/
registration or equivalent
$1,467.20 per week
or
$76,560 per year
$1,525.90 per week
or
$79,622 per year
Level 3
Teacher with proficient accreditation/
registration or equivalent after three years’ satisfactory teaching service at Level 2
$1,597.30 per week
or
$83,347 per year
$1,661.20 per week
or
$86,681 per year
Level 4
Teacher with proficient accreditation/
registration or equivalent after three years’ satisfactory teaching service at Level 3
$1,727.40 per week
or
$90,134 per year
$1,796.50 per week
or
$93,739 per year
Level 5
Teacher with Highly Accomplished/Lead Teacher accreditation/
registration or equivalent
$1,857.40 per week
or
$96,919 per year
$1,931.70 per week
or
$100,796 per year
Note, full-time employees in long day care centres receive an additional 4% on top of the standard rates provided for preschools and schools because these services typically operate for at least eight hours a day for 48 weeks a year or more. The additional pay compensates for the fact that these employees don’t follow the usual working hours outlined in the award.
Part-time and casual employee rates
Employment type
Pay structure
Example
Part-time
Pro rata of full-time rate
If the full-time weekly rate for a Level 2 teacher is $1,467.20 and they work 20 hours a week (out of a 38-hour full-time week), their weekly pay would be $772.21.
Casual (less than 5 days)
Level 3 rate + 25%
If a casual teacher works for three days and the Level 3 weekly full-time rate is $1,597.30, they’d receive $399.32 per day, totaling $1,197.96.
Casual (5 days or more)
Appropriate classification rate + 25%
If a casual teacher at Level 4 works for five days, with a Level 4 weekly rate of $1,796.50, they’d receive $449.12 per day (including 25% loading), totaling $2,245.60.
Casual (full day rate)
Weekly rate / 5 + 25% casual loading
A casual teacher with a full-time weekly rate of $1,342.40 works one full day. Their daily rate is calculated as $268.48, which with a 25% casual loading becomes $335.60 for that day.
Casual (half day rate)
Weekly rate / 10 + 25% casual loading
A casual teacher with a full-time weekly rate of $1,342.40 works a half day. Their half-day rate is calculated as $134.24, which with a 25% casual loading becomes $167.80 for the half day.
Note, for casual school employees, there’s a provision to ensure they’re paid for at least half a day if their typical required attendance aligns with such a duration at a specific school. In early childhood services, casual employees have distinct minimum pay conditions based on the duration of their work: those required to work up to two hours will receive pay for two hours minimum. If a casual employee works more than two hours but up to four hours, they’re compensated for four hours minimum. Should their work extend beyond four hours and up to a full day, they’ll be paid for the full day, ensuring they’re fairly compensated for longer durations of service.
Educational Service (Teachers) Award payment of wages
Below, we clarify the frequency, timing, and methods of wage payments, and outline the obligations of employers upon the termination of employment
General payment of wages
- Frequency and timing of wage payments: Employers can structure employee payments in several ways to accommodate different operational needs and preferences:
- Fortnightly payments: Wages are typically paid every two weeks, with the transaction completed by the last working day of the fortnightly period. This regular payment schedule is designed to provide consistent financial support for employees, including teachers in early childhood services that operate for most of the year.
- Four-weekly payments: An alternative schedule involves payments every four weeks, covering two weeks of work, both in arrears and in advance. This system balances between more frequent fortnightly payments and less frequent monthly payments, providing flexibility while ensuring employees have predictable access to their earnings.
- Monthly payments: Monthly wage payments are made around the middle of each month, with half of the month paid in arrears and the other half in advance. This is often a preferred method for its simplicity and alignment with monthly billing cycles, making financial planning easier for employees.
- Payment method: Employers have the choice to disburse wages via cash, cheque, or direct bank transfer. For direct transfers, employees have the right to specify the financial institution and account, empowering them to better manage their financial inflows.
Payment on termination of employment
- Immediate payment requirements: Employers must pay final wages for any complete or incomplete pay periods up to and including the day of termination within seven days of the employment ending. They must also settle all other entitlements owed to the employee under this award and the NES concurrently.
- Long service leave: Depending on applicable State and Territory laws, or provisions under section 113 of the Act, employers may need to pay out accrued long service leave on the day of termination or shortly thereafter.
- Deductions and further orders: The Fair Work Commission may intervene to delay required payments, such as redundancy pay, under specific conditions to accommodate both employer and employee circumstances.
Educational Award allowances
Employers must provide employees with the allowances to which they’re entitled under this award. The table below details the various allowances, including their amounts and specific conditions for eligibility:
Allowance type
Description
Amount/details
Conditions and eligibility
Director’s allowance
For early childhood/preschool teachers appointed as directors, managing a specified number of places.
Up to 39 places: $8,055.18 per year
40–59 places: $9,981.41 per year
60 or more places: $12,117.79 per year
Part-time directors receive a prorated allowance based on their hours worked.
Leadership allowance
For teachers undertaking significant administrative, pastoral care, or educational leadership roles.
Based on school size and responsibility level.
Category A (600+ students) Level 1: $5,603.60
Category B (300–600 students) Level 1: $4,903.15
Category C (100–299 students) Level 1: $4,412.84
The principal will provide written advice detailing the position, tenure, duties required, and the specific allowance.
Educational leader allowance
For designated educational leaders in children's services and early childhood education.
$4,412.84 per year
Payable in addition to any director's allowance.
For part-time roles, it’s prorated according to the days worked as an educational leader.
Vehicle allowance
For employees using personal vehicles for work-related duties.
Car: $0.99 per km, up to 400 km/week
Motorcycle: $0.33 per km, up to 400 km/week
N/A
Teachers Award superannuation
Superannuation is a vital part of the compensation framework for employees under the Educational Services (Teachers) Award. The award aligns with the National Employment Standards (NES) and relevant superannuation legislation to ensure that employers fulfil their superannuation obligations effectively.
- Superannuation guarantee: Employers are required to contribute to superannuation at the current guarantee rate (11.5%), which ensures that employees receive a portion of their salary in a super fund, contributing to their retirement savings. The guarantee rate applies to the employee's ordinary time earnings (OTE).
- Employee eligibility: Employees over 18 years old and employees under 18 years old working more than 30 hours a week. This applies to all types of employees including full-time, part-time, and casual.
- Employee fund choice: Employees typically have the option to select their own superannuation fund. If a new employee doesn’t select a fund, the employer’s responsible for checking with the ATO to determine if the employee has a stapled superannuation fund. If there’s no stapled fund, employers can contribute to a fund nominated in the award that can accept contributions for the employee. Approved funds include:
- NGS Super
- Australian Catholic Superannuation and Retirement Fund (ACSRF)
- HESTA Super Fund
- AustralianSuper
- Sunsuper
- Other specific funds as listed in the award
- Continued contributions: Contributions should continue during periods of paid leave and can extend up to 52 weeks for work-related absences, providing employees with uninterrupted superannuation benefits.
- Voluntary employee contributions: Employees can make additional voluntary contributions from their wages. Employers must facilitate these contributions and ensure they’re paid into the chosen fund promptly.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Educational Award annual leave
Annual leave for teachers and educational staff is governed by the NES and supplemented by specific provisions under the Educational Services (Teachers) Award. This ensures industry-specific adjustments are appropriately integrated.
Annual leave entitlement and timing
- General provision: Teachers must take their annual leave, primarily during non-term weeks, to minimise disruption to the educational schedule.
- Specific timing for schools: In schools, preschools, or kindergartens, teachers generally must take annual leave during the four-week period immediately following the final term week of the current school year, unless they agree on an alternative arrangement with the employer.
Pro rata payment of salary including annual leave
The award details the calculation for pro rata payment of salary inclusive of annual leave, ensuring teachers receive fair compensation if their employment ceases or their work conditions change during the year.
Condition
Calculation method
Application
Standard annual leave
Base salary during non-term weeks
Mandatory for continuing employment into the next year
Employment termination or change
Pro rata based on terms worked and changes in work conditions
Applied at employment termination or after significant changes
Calculation of payments
Payment for annual leave is calculated based on the proportion of the school year worked, adjusted for any non-term weeks.
Payment = (total salary × number of non-term weeks) / number of term weeks
Teachers starting after the school service date receive a pro rata salary based on the part of the school year they work.
Annual leave loading
Teachers receive a leave loading of 17.5% on four weeks of annual leave, reflecting the additional costs associated with periods of rest. Employers normally pay leave loading either when teachers take annual leave or upon termination of employment. Employers may also choose to pay leave loading with each wage payment throughout the school year by appropriately increasing the annual rate of pay.
Other types of leave
The leave options outlined below are in accordance with the NES and provide support for employees under various circumstances:
- Personal/carer’s leave: Full-time employees receive 10 days of paid personal/carer’s leave annually. Part-time employees have a right to this leave on a pro-rata basis.
- Compassionate leave: Employees can take two days of compassionate leave for each significant event, 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: Consistent with the NES, employees are eligible for unpaid leave for community service reasons, which include voluntary emergency management activities and jury duty.
- Family and domestic violence leave: Employees receive 10 days of unpaid leave per year to address situations of family and domestic violence.
Public holidays
Public holidays provide employees with essential breaks from work and form a crucial component of employee benefits under the Educational Services (Teachers) Award. Below is a summary of how public holidays are handled within the framework of this award and the NES:
Clause
Details
General entitlement
The NES dictates that employees, excluding casual workers, are entitled to take public holidays off with pay.
Working on public holidays
Employers can request employees to work on a public holiday, but such requests must be reasonable.
Employees can decline to work on a public holiday if they consider the employer's request unreasonable or if they have reasonable grounds for their refusal.
Substitution of public holidays
Both employer and employee may mutually agree to substitute another day for a scheduled public holiday. Similarly, they can agree to substitute a part-day for a part-day public holiday if it aligns better with their needs.
Recognised public holidays
Public holidays included under the NES encompass New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day.
Additional public holidays
State and territorial governments can proclaim additional public holidays, which employers must honour.
Substitute holidays
Often, when a public holiday falls on a weekend, a substitute public holiday typically occurs on the following Monday, ensuring that the public holiday is observed.
Educational Services (Teachers) Award payment management tips
Managing payments and entitlements under the Educational Award requires careful attention to detail. Here are some effective strategies to ensure compliance with minimum wage, wage payments, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay updated with award rates: Regularly refresh your knowledge of minimum wage rates, overtime, and penalty rates specified in the award. Keep in mind that these rates are subject to annual adjustments.
- Use reliable payroll software: Implement trustworthy payroll software, such as Rippling, to automate the calculation of wages, overtime, penalty rates, and superannuation contributions. Automation helps minimise errors and ensures timely disbursement of payments.
- Accurate record-keeping: Keep comprehensive and precise records of all employee payments, including regular wages, overtime, penalty rates, and leave entitlements. Detailed record-keeping is crucial for compliance and for resolving any disputes that may arise.
- Regular audits: Periodically audit your payroll system to ensure adherence to the Educational Services (Teachers) Award. Make sure all payments meet the current standards of the award.
- Training and support: Offer comprehensive training to your HR and payroll staff about the specifics of the Educational Services (Teachers) Award. Ensuring they understand the intricacies of the award will help them manage payments and entitlements accurately.
- Consultation and legal advice: Regularly consult with industrial relations experts or legal advisors to stay updated on any changes in the award or employment laws that could affect your payroll procedures.
- Manage leave effectively: Accurately track and manage employee leave balances, including annual leave, personal/carer’s leave, compassionate leave, and other types of leave. Ensure employees know about their leave entitlements and balances.
- Superannuation compliance: Verify that the calculation of superannuation contributions are based on ordinary time earnings (OTE) and paid on time. Use payroll software to automate these calculations and payments.
- Communication with employees: Maintain open and clear communication with employees about their pay, entitlements, and any changes to award conditions. Transparent communication builds trust and helps prevent misunderstandings.
- Stay informed about NES: Keep up with the National Employment Standards, which provide foundational guidelines that interact with provisions of the Educational Services (Teachers) Award.
Teachers Award nuances
The Educational Services (Teachers) Award caters to a diverse range of roles within the education sector, from classroom teaching to administrative functions. This broad coverage provides essential flexibility but also introduces complexities that could lead to compliance challenges. Below are some critical nuances to consider:
- Casual pay rate complexity: The pay rates for casual employees in the educational sector are intricate due to varying conditions based on the length of engagement and the type of institution.
Impact: Incorrectly calculating casual pay rates can lead to significant payroll discrepancies. It is vital to ensure that casual employees receive payment according to the correct rate for their specific circumstances to avoid potential legal and financial repercussions.
- Casual minimum engagement pay: For casual school employees, there’s a guaranteed minimum half-day pay if their usual attendance matches such a duration at a specific school. In early childhood services, the conditions are even more specific. Up to two hours of work triggers a minimum payment for two hour. More than two hours, but up to four hours of work results in a minimum payment for four hour. Work beyond four hours up to a full day ensures payment for the entire day.
Impact: Failing to adhere to these specific minimum engagement payments can result in underpayments and potential claims against the employer. Employers need to thoroughly understand and implement these provisions to ensure fair compensation and compliance.
- Lack of overtime and penalty rates: Unlike many other awards, the Educational Services (Teachers) Award doesn’t include provisions for overtime or penalty rates.
Impact: This absence means that compensation structures may be simpler but could potentially lead to dissatisfaction among employees who work longer hours without additional pay. Employers must manage scheduling and workload effectively to maintain fairness and employee morale.
- Additional annual leave regulations: Beyond the standard NES regulations, the Educational Award includes specific provisions for annual leave, particularly regarding its timing and payment.
Impact: These additional regulations require careful management to ensure compliance. Employers need to schedule annual leave in accordance with both the award and the NES, and ensure that payment calculations reflect the correct entitlements.
Educational Services (Teachers) Award pay, overtime and superannuation compliance with Rippling
Administering wages, overtime, superannuation, and annual leave under modern awards can be intricate. Rippling’s comprehensive platform simplifies these tasks, guaranteeing precision, compliance, and complete assurance. Key functionalities 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.
