Miscellaneous Award pay rates, allowances, and overtime
The Miscellaneous Award 2020 is designed to cover employees who aren't included in other modern awards, ensuring fair wages and conditions for various roles that might otherwise be overlooked. This award applies to a diverse range of occupations and industries, providing a safety net for workers not covered by industry-specific awards.
This article focuses on key aspects of the Miscellaneous Award, including minimum pay rates, wage payment, allowances, superannuation, overtime, penalty rates, leave, 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 24/05/2024. As award conditions and rates are subject to change, please ensure you refer to the latest version of the Miscellaneous Award 2020 for the most current information.
Miscellaneous Award minimum pay rates
Understanding the minimum pay rates is essential for both employers and employees to ensure fair compensation. The following table provides a detailed overview of the minimum rates applicable under the Miscellaneous Award, covering various categories of workers.
Description
Rates/Details
Example
Adult employees
Employees aged 21
and over
Level 1: $859.30/week ($22.61/hour)
Level 2: $914.90/week ($24.08/hour)
Level 3: $995.00/week ($26.18/hour)
Level 4: $1085.60/week ($28.57/hour)
A 25-year-old full-time worker classified as Level 2 will be paid $914.90 per week or $24.08 per hour.
Junior employees
Employees aged under 21
Under 16: 36.8% of adult employee rate
16 years: 47.3% of adult employee rate
17 years: 57.8% of adult employee rate
18 years: 68.3% of adult employee rate
19 years: 82.5% of adult employee rate
20 years: 97.7% of adult employee rate
A 17-year-old employee will be paid 57.8% of the relevant adult rate for their classification.
Adult apprentices
Apprentices aged 21 and over
1st year: 80% of Level 3 or relevant year rate
2nd year onwards: lowest adult classification rate or relevant year rate
A 1st-year adult apprentice will be paid 80% of the Level 3 rate, which is $796.00 per week or $20.94 per hour, unless the relevant apprentice rate is higher.
Junior apprentices
Apprentices aged
under 21
1st year: 55% of Level 3 rate
2nd year: 65% of Level 3 rate
3rd year: 80% of Level 3 rate
4th year: 95% of Level 3 rate
A 2nd-year apprentice under 21 will be paid 65% of the Level 3 rate, which is $646.75 per week or $17.02 per hour.
School-based apprentices
Students combining part-time work with an apprenticeship while still attending school
Paid based on the proportion of time spent in training and work
An apprentice who spends 60% of their time at work and 40% in training will be paid 60% of the relevant rate.
Higher duties
Higher classification duties performed for over 4 hours
Paid at the higher classification rate for the entire day
A Level 1 employee taking on Level 3 responsibilities for over 4 hours in a day will be paid the Level 3 rate ($26.18 per hour) for the entire day.
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.
Higher duties
Higher classification duties performed for over 4 hours
Paid at the higher classification rate for the entire day
A Level 1 employee taking on Level 3 responsibilities for over 4 hours in a day will be paid the Level 3 rate ($26.18 per hour) for the entire day.
Miscellaneous Award payment of wages
Understanding how wages are paid is important for both employers and employees to ensure compliance and avoid disputes. Here’s a breakdown of the key points regarding wage payment under the Miscellaneous Award:
General payment of wages
- Requirements for paying wages: Employers must pay employees for all hours worked at the agreed-upon rate. Wages must be paid at least monthly and in money, either by cash, cheque, or electronic funds transfer.
- Payslip requirements: According to the Fair Work Regulations 2009, payslips must clearly detail any allowances paid, along with other required information such as the employee’s pay rate, hours worked, and any deductions made.
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:
- Employers can make deductions authorised by the award or the Act.
- The Fair Work Commission can issue orders to delay payments, such as redundancy pay, under certain conditions.
Miscellaneous Award allowances
Employers must pay employees the allowances they’re entitled to under the Miscellaneous Award. The following table provides a clear overview of the various allowances, their amounts, and the conditions under which they’re paid.
Allowance type
Description
Amount/Details
First aid allowance
For employees trained and qualified to provide first aid and appointed to perform first aid duties
$19.90 per week
Leading hand/in charge
For team leaders or leading hands in charge of 3 or more employees
3-10 employees: $43.78 per week
11-20 employees: $64.68 per week
More than 20 employees: $82.59 per week
Clothing reimbursement
For employees required to provide special clothing or a uniform
Reimbursement for the cost of the clothing
Meal allowance
For employees required to work more than one hour of overtime without 24 hours' notice
$21.57 for the first meal
$19.56 for a further meal if overtime exceeds 4 hours
Vehicle allowance
For employees using their own vehicle for employer’s business
$0.95 per kilometre
Reimbursement of expenses
For employees incurring reasonable expenses at the direction of the employer
Reimbursement of all reasonable expenses
Miscellaneous Award superannuation
Superannuation is a cornerstone of the compensation framework. The current superannuation guarantee rate is set at 11% of an employee's ordinary time earnings (OTE). Employers are required to make superannuation contributions for employees who meet the following criteria:
- Over 18 years old, or
- Under 18 years old and working over 30 hours a week.
If eligible, the superannuation guarantee applies to all types of employees, including:
- Full-time employees
- Part-time employees
- Casual employees
Here's a streamlined look at other superannuation essentials:
- Employee fund choice: Employees can typically choose their super fund; otherwise, the employer's nominated fund applies.
- Employer contributions: To avoid the Superannuation Guarantee Charge, employers must make accurate contributions based on legislation.
- Extra employee contributions: Employees can contribute more from their wages, and employers facilitate these payments.
- Approved funds: Several approved funds are available, offering employees flexibility in retirement planning.
- Continued contributions: Under certain conditions, contributions continue during paid leave and up to 52 weeks for work-related absences.
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 are generally not 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.
Miscellaneous Award overtime
Overtime pay is awarded for any work performed beyond the standard 38-hour workweek or beyond the agreed-upon hours for part-time employees. The Miscellaneous Award specifies overtime rates to ensure employees are adequately compensated for exceeding their regular work hours.
Here’s the breakdown of overtime compensation applicable to all employees under the Award:
Overtime worked
Overtime rate
First three hours
150% of the relevant minimum rate (time and a half)
After three hours
200% of the relevant minimum rate (double time)
Example
Jane is a full-time employee who works a standard 38-hour week. One week, she works an additional five hours beyond her regular hours.
For the first three hours of overtime, Jane’s paid at 150% of her regular hourly rate.
For the remaining two hours, she’s paid at 200% of her regular hourly rate.
If Jane’s regular hourly rate is $25:
- First 3 hours of overtime: 3 hours x $25 x 1.5 = $112.50
- Next 2 hours of overtime: 2 hours x $25 x 2 = $100
- Total overtime pay: $112.50 + $100 = $212.50
Time off instead of payment for overtime
The award provides 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 ten-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 also entitled to the overtime rates as specified above, in addition to their casual loading.
Miscellaneous Award penalty rates
Penalty rates are applied to work performed by an employee outside of ordinary hours that aren’t classified as overtime. These penalty rates ensure that employees are fairly compensated for working outside standard hours, reflecting the additional demands and inconveniences of such work.
The following table outlines the penalty rates applicable to both full-time/part-time employees and casual employees under the Miscellaneous Award 2020:
Day/Time
Full-time and part-time employees
Casual employees
Example
Monday to Friday (outside 7.00 AM to 7.00 PM)
120% of the minimum hourly rate
145% of the minimum hourly rate
Emma is a full-time employee with a minimum hourly rate of $25. On one day, she works until 9 PM. For the hours worked after 7 PM, she’s paid at 120% of her hourly rate: 2 hours x $25 x 1.2 = $60.
Saturday (all day)
120% of the minimum hourly rate
145% of the minimum hourly rate
Tom is a casual employee with a minimum hourly rate of $25. He works 5 hours on Saturday and is paid 145% of his hourly rate: 5 hours x $25 x 1.45 = $181.25.
Sunday (all day)
150% of the minimum hourly rate
175% of the minimum hourly rate
Sarah is a full-time employee with a minimum hourly rate of $25. She works 4 hours on Sunday. She’s paid at 150% of her hourly rate: 4 hours x $25 x 1.5 = $150.
Public holidays
(all day)
250% of the minimum hourly rate
250% of the minimum hourly rate
Mike is a casual employee with a minimum hourly rate of $25. He works 3 hours on a public holiday. He’s paid at 250% of his hourly rate: 3 hours x $25 x 2.5 = $187.50.
Miscellaneous Award leave and public holidays
Leave entitlements are an essential aspect of employee rights under the Miscellaneous Award. This section covers various types of leave provided under the award, 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
As per the NES:
Full-time employees are entitled to four weeks of annual leave per year of service.
Part-time employees are entitled to 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 in addition to the NES entitlement or ordinary pay, whichever is greater.
John takes two weeks of annual leave. His regular weekly pay is $1000.
He receives an additional 17.5% loading: $1000 x two weeks x 17.5% = $350.
Shutdown period
Employers can shut down operations temporarily, requiring employees to take paid annual leave.
One month’s written notice is required.
Written direction must be given.
Leave without pay can be agreed upon if no accrued leave.
A company plans a shutdown for the first week of January. They notify employees on 1st December.
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.
Sarah 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 1st March.
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.
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.
Sarah 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 1st March.
Other types of leave
The leave provisions below align with the NES and offer support to employees in various circumstances:
- Personal/carer’s leave: Full-time employees are entitled to 10 days of paid personal/carer’s leave per year, and part-time employees are entitled to leave on a pro-rata basis.
- Compassionate leave: Employees are entitled to two days of compassionate leave for each permissible occasion (e.g., the death or serious illness of a close family member).
- Parental leave: Employees are entitled to up to 12 months of unpaid parental leave, with a right to request an additional 12 months.
- Community service leave: As per the NES: Employees are entitled to unpaid leave for community service activities such as voluntary emergency management activities or jury duty.
- Family and domestic violence leave: Employees are entitled to unpaid family and domestic violence leave, which is 10 days per year.
Public holidays
Public holidays provide employees with an opportunity to take time off work and are a key component of employee entitlements under the Miscellaneous Award. Here’s a comprehensive overview of how public holidays are handled according to the award and the NES:
Clause
Details
General entitlement
The NES provides for public holiday entitlements. Employees (except 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 can refuse to work if the employer’s request is unreasonable or if the refusal is reasonable.
Substituting a public holiday
An employer and an employee can agree to substitute another day for a public holiday.
Substituting a part-day public holiday
An employer and an employee can agree to substitute another part-day for a part-day that would otherwise be a part-day public holiday.
Penalty rates for work on public holidays
Any work performed by an employee on a public holiday must be paid at the penalty rates specified in clause 20 of 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 also be observed.
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.
Miscellaneous Award payment management tips
Effectively managing payments and entitlements under the Miscellaneous Award can be complex. Here are some tips to help ensure compliance with minimum wage, payment of wages, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay updated with award rates: Regularly review and update your knowledge of the minimum wage rates, overtime, and penalty rates, as stipulated in the award. Rates can change annually.
- Use reliable payroll software: Invest in effective payroll software like Rippling to automate calculations for wages, overtime, penalty rates, and superannuation. This can reduce errors and ensure timely payments.
- Accurate record-keeping: Maintain detailed and accurate records of all employee payments, including regular wages, overtime, penalty rates, and leave entitlements. This is essential for compliance and resolving any disputes.
- Regular audits: Conduct regular audits of your payroll system to ensure compliance with the Miscellaneous Award. This includes verifying that all payments align with the latest award requirements.
- 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.
- Training and support: Provide training for your HR and payroll staff on the specifics of the Miscellaneous Award. Ensure they understand the nuances of the award to manage payments and entitlements accurately.
- 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 affect your payroll practices.
- Manage leave effectively: Track employee leave balances accurately, including annual leave, personal/carer’s leave, compassionate leave, and any other entitlements. Ensure employees are aware of their leave balances and entitlements.
- Superannuation compliance: Ensure superannuation contributions are calculated correctly based on ordinary time earnings (OTE) and paid on time. Use payroll software to automate these calculations and payments.
- Communication with employees: Maintain clear and open communication with employees about their pay, entitlements, and any changes to award conditions. This helps to build trust and prevent misunderstandings.
- Stay informed about NES: Stay up to date with the National Employment Standards, which provide foundational guidelines that interact with the Miscellaneous Award provisions.
Miscellaneous Award nuances
The Miscellaneous Award serves as a broad umbrella for various employment roles that don't easily align with more narrowly defined industry or job-specific awards. This catch-all nature, while flexible, introduces complexities that can lead to unintentional non-compliance. Below are nuances to keep in mind:
- Compliance with award rates: There’s a common misconception among employers that roles falling under the Miscellaneous Award are less regulated or entitled to fewer benefits. This can stem from the perception that these roles are 'miscellaneous' and therefore, not subject to the stringent conditions and entitlements outlined in more specific awards.
Impact: Employers might overlook these entitlements, risking underpayment for after-hours work and resulting in significant financial liabilities and compliance issues. - Back payment obligations: Some employers operate under the assumption that the flexibility of the Miscellaneous Award means a less rigorous approach to pay rates.
Impact: Unintentional underpayment can lead to substantial back payments and potential legal action, causing financial strain and legal repercussions for the employer.
Simplifying Miscellaneous 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.
