Professional Employees Award pay rates, allowances, and overtime
The Professional Employees Award 2020 stipulates the employment terms for those in the professional sector, ensuring fair compensation and appropriate working conditions. This award encompasses an array of roles, setting essential standards for these professionals.
This summary outlines the key components of the Professional Employees Award, including minimum base pay rates, wage payment procedures, various allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Obtaining an in-depth understanding of these elements is key to ensuring compliance and promoting a fair workplace environment.
Note: The information provided in this article is accurate as of 11/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Professional Employees Award 2020 for the most current information.
Professional Employees Award minimum pay rates
Comprehending the minimum pay rates ensures that employees in the professional sector are fairly compensated. The following table provides a comprehensive summary of the minimum rates established by the Professional Employees Award, covering a variety of roles.
Part-time employees receive the minimum hourly rate, while casual employees are entitled to a 25% loading in addition to the minimum hourly rate for each hour worked.
Classification
Annual wages (full-time employee)
Minimum hourly rate
Level 1 graduate professional—Pay point 1.1 (3 year degree)
$61,638
$31.09
Level 1 graduate professional—Pay point 1.1 (4 or 5 year degree)
$63,217
$31.89
Level 1 graduate professional—Pay point 1.2
$64,278
$32.43
Level 1 graduate professional—Pay point 1.3
$66,955
$33.78
Level 1 graduate professional—Pay point 1.4
$70,347
$35.49
Level 2 experienced professional/quality auditor/experienced medical research employee
$72,716
$36.68
Level 3 professional/senior (lead) quality auditor/experienced medical research employee
$79,469
$40.09
Level 4 professional/experienced medical research employee
$89,630
$45.21
Level 5 experienced medical research employee
$107,977
$54.47
Professional Award payment of wages
The Professional Employees Award only provides limited guidance on the payment of wages, specifically regarding payslips and termination payments:
- Payslips: Fair Work Regulations 2009 require pay records and payslips to clearly identify any allowances paid.
- 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.
In the absence of detailed stipulations on payment frequency, paydays, and methods, employers should follow the general guidelines set out by the Fair Work Act 2009 and Fair Work Regulations 2009, as well as any relevant company policies or employment contracts.
Professional Employees Award allowances
The Professional Employees Award specifies various allowances to ensure employees are fairly compensated for additional expenses incurred while performing their duties. Each expense-related allowance is adjusted annually based on the percentage movement in the applicable Consumer Price Index (CPI) published by the Australian Bureau of Statistics. Adjustments are made in line with the Eight Capitals Consumer Price Index (Cat No. 6401.0).
Below are the main allowances provided under this award:
Allowance type
Description
Amount/details
Travelling expenses and travelling time
For employees travelling on business.
Reimbursement of all reasonable expenses incurred. Reasonable compensation for excess travel time.
Vehicle allowance
Employees required to use their private vehicle for work purposes. The use of the vehicle must be mutually agreed upon.
$0.98 per kilometre travelled.
Equipment and special clothing
For employees needing special equipment and clothing for their work.
Free provision of required equipment and clothing.
Professional Award superannuation
Under the Professional Employees Award, superannuation rights and obligations are governed by the National Employment Standards (NES) and various pieces of superannuation legislation, including the Superannuation Guarantee (Administration) Act 1992, Superannuation Guarantee Charge Act 1992, Superannuation Industry (Supervision) Act 1993, and Superannuation (Resolution of Complaints) Act 1993. Here’s a simplified overview of how superannuation works under this award:
- Superannuation contributions: Employers are required to make superannuation contributions to a fund on behalf of their employees to avoid paying the superannuation guarantee charge. As of now, the superannuation guarantee rate is 11.5% of an employee’s ordinary time earnings.
- Employee eligibility: Most employees are eligible to receive superannuation contributions if they’re aged 18 or over and earn more than $450 in a calendar month. This includes full-time, part-time, and casual employees.
- Superannuation fund: Employees generally have the right to choose their superannuation fund. If a new employee doesn’t choose a fund, employers must check with the Australian Taxation Office (ATO) to see if the employee has a stapled superannuation fund (a fund linked to the employee). If the employee has a stapled fund, the employer must make contributions to that fund
If the employee has no stapled fund, the employer can contribute to AustralianSuper, Tasplan, Statewide Superannuation Trust, or any superannuation fund used by the employer before 12 September 2008, provided it's an eligible choice fund offering a MySuper product or an exempt public sector superannuation scheme.
- 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 also make additional voluntary contributions to their superannuation fund. They can authorise their employer, in writing, to deduct a specified amount from their post-tax wages and pay it into the superannuation fund. Employees can adjust these contributions with three months' written notice, and employers must make these payments within 28 days after the end of the month in which the deductions were made.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Professional Employees Award overtime and penalty rates
Overtime and penalty rates ensure employees receive fair compensation for working beyond their regular hours. The Professional Employees 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.
Overtime
Under the Professional Employees Award, employers can request or require employees to work overtime, provided the additional hours are reasonable as per the Fair Work Act.
Payment for overtime
Unlike other awards, there are no additional rates (such as time and a half or double time) for overtime; it’s paid at the normal hourly rate.
- Full-time employees: Overtime is paid at the appropriate minimum hourly rate for hours worked beyond 38 per week, or an average of 38 hours per week if agreed. This includes work related to call-backs and remote work.
- Part-time and casual employees: Overtime is paid at their hourly rate for hours worked beyond 38 per week, in accordance with the relevant clauses for part-time and casual employees.
- Remote work: Employees must record and report their remote work hours to be eligible for overtime pay.
- Exemptions: Employees with a contractual entitlement to an annual salary exceeding the minimum annual wage by 25% or more are exempt from overtime payments, time off instead of payment for overtime, and the associated record keeping.
Time off instead of payment for overtime
Employers mustn’t exert undue influence on employees to agree to time off instead of payment for overtime. Additionally, requests, under the Fair Work Act for changes in working arrangements, can only be refused on reasonable business grounds. If an employee's employment ends with unused overtime, the employer must pay for the overtime at the applicable rate.
- Agreement: Employees and employers can agree in writing to time off instead of overtime pay. Each agreement must specify the number of overtime hours and when they were worked.
- Taking time off: Time off must be taken within six months of working the overtime, at a mutually agreed time. If not taken within six months, the employee must be paid at the normal overtime rate.
- Request for payment: Employees can request to be paid for unused overtime hours at any time, and the employer must pay them in the next pay period.
- Record keeping: Employers must keep a copy of any time off agreement as part of employee records.
Penalty rates
Under the Professional Employees Award, employees are entitled to penalty rates for all hours worked at the direction of the employer during specific times. These rates are designed to compensate employees for working outside of standard hours.
Time of ordinary hours
worked
Full-time and part-time employees (% of minimum hourly rate)
Casual employees (% of minimum hourly rate)
Monday to Saturday (before 6 AM)
125%
150%
Monday to Saturday (after 10 PM)
125%
150%
Sunday (any time of day)
150%
175%
Public holiday (any time of day)
150%
175%
Additional notes
- Casual loading: The penalty rates for casual employees include the casual loading.
- Record keeping: Employers must keep accurate records of all hours worked by employees that qualify for penalty rates.
- Exemptions: Employees with a contractual entitlement to an annual salary exceeding the minimum annual wage by 25% or more are exempt from penalty rates and the related record-keeping requirements.
Professional Award leave and public holidays
The Professional Employees Award 2020 outlines specific details regarding annual leave, including entitlements, payment, and provisions for leave during shutdown periods, leave in advance, cashing out leave, dealing with excessive leave accruals, and requirements for public holidays.
Annual leave
Clause
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
Shiftworker annual leave
Can realize a profit or incur financial losses from their work
Does not bear an economic risk
Other types of leave
The following leave entitlements align with the NES, providing essential support for employees in various situations:
- Personal/carer’s leave: Full-time employees receive 10 days of paid personal/carer’s leave annually, which can be used for personal illness or to care for a sick family member. Part-time employees accumulate this leave proportionally based on their hours worked.
- Compassionate leave: Employees are entitled to two days of compassionate leave for each occasion when an immediate family member or household member passes away 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, with the possibility of requesting an additional 12 months. Employers can only refuse this request on reasonable business grounds.
- Community service leave: Employees can take leave for eligible community service activities, such as volunteering for emergency management or attending jury duty. This leave is unpaid, except for jury duty, where employees may receive make-up pay.
- Family and domestic violence leave: Employees are entitled to 10 days of paid family and domestic violence leave annually. This leave can be used for activities such as seeking medical attention, obtaining services from support organisations, or attending court proceedings.
Public holidays
Public holidays offer employees a valuable break from their regular work duties and are an essential part of the benefits under the Professional Employees Award 2020. 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 ask an employee to work on a public holiday if the request is reasonable. Employees can refuse if the request is unreasonable or 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 employers must observe.
Substitute holidays
If a public holiday falls on a weekend, a substitute public holiday is typically declared, often the following Monday.
Professional Employees Award payment management tips
Managing payments and entitlements under the Professional Employees Award can be challenging. Here are some helpful strategies to ensure compliance with various requirements, such as minimum wage, wage payments, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay informed about wage changes: Regularly review updates to minimum wages, overtime, and penalty rates, as these can change each year under the award.
- Invest in payroll automation: Utilise efficient payroll software to automate wage calculations, including overtime, penalty rates, and superannuation contributions, which helps minimise errors and ensure punctual payments.
- Maintain accurate records: Keep thorough documentation of all employee payments, including wages, overtime, penalty rates, and leave entitlements. This practice ensures compliance and helps resolve any potential disputes.
- Conduct regular payroll reviews: Periodically audit your payroll system to confirm it aligns with the latest award requirements and make any necessary adjustments.
- Document agreements thoroughly: Ensure all agreements related to annual leave (such as leave taken in advance or leave cashed out) and overtime (including time off in lieu) are recorded and signed by both parties.
- Provide comprehensive training: Train your HR and payroll teams on the specifics of the Professional Employees Award to ensure they manage payments and entitlements correctly.
- Consult with specialists: Regularly seek advice from industrial relations experts or legal professionals to stay informed about any changes to the award or employment laws.
- Efficient leave management: Track employee leave balances meticulously, including annual leave, personal/carer's leave, and compassionate leave. Ensure employees are kept informed of their leave balances and entitlements.
- Ensure accurate superannuation contributions: Calculate superannuation contributions accurately based on ordinary time earnings (OTE) and ensure timely payments. Using payroll software can help automate these calculations and contributions.
- Foster open communication: Maintain clear communication with employees about their pay, entitlements, and any changes to award conditions to build trust and avoid misunderstandings.
- Keep up with NES standards: Regularly update your knowledge on the National Employment Standards, as these provide the basic guidelines that work in conjunction with the Professional Employees Award.
Professional Award nuances
Grasping the intricacies of the Professional Employees Award is vital for employers to maintain compliance and prevent potential problems. Here are some key aspects that are often overlooked:
- Full-time employee minimum rates: Full-time employee minimum rates are displayed annually instead of weekly. This annual rate is essential for understanding overall compensation.
Impact: Misunderstanding the annual rate presentation could lead to incorrect pay calculations. Employers need to ensure they are referencing the annual rates correctly.
- Limited guidance on wage payment: The Professional Employees Award provides limited guidance on the payment of wages
Impact: Employers must follow the general guidelines set out by the Fair Work Act 2009 and relevant regulations to ensure they meet all necessary wage payment obligations.
- Overtime payments: Unlike other awards that specify higher rates (e.g., time and a half or double time) for overtime, the Professional Employees Award stipulates payment at the normal hourly rate for overtime worked
Impact: Employers must accurately calculate overtime pay at the normal hourly rate. Misunderstanding this rule can lead to payroll discrepancies and potential disputes.
- Exemptions for higher salaried employees: Employees with a contractual entitlement to an annual salary exceeding the minimum annual wage by 25% or more are exempt from overtime payments, time off instead of payment for overtime, penalty rates, and the related record-keeping requirements
Impact: Employers need to identify and properly document employees who fall under this exemption to ensure compliance and avoid unnecessary record-keeping for exempt employees.
Simplifying Professional Employee Award pay, overtime and superannuation compliance with Rippling
Handling payroll, overtime, superannuation, and annual leave in line with modern awards can be challenging. Rippling's comprehensive platform simplifies these tasks, ensuring precision, compliance, and ease. 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.
