Award rate

The award rate is a baseline salary determined by an award, which sets the minimum pay for employees in specific industries or jobs. This rate ensures that employees receive fair compensation for their work. It varies across different awards, reflecting the unique demands and conditions of various occupations. Employers must pay at least this rate, but they can pay more.

Paying at least the award rate

Rates current from 1 July 2026.

Award rates are minimums. You can pay more, but if you pay a flat rate or annual salary, it must still cover what the employee would have earned under the award for the hours they actually work, including overtime, penalty rates and allowances. Award rates rise each year after the Annual Wage Review; from 1 July 2026, modern award minimum rates increased by 4.75%. For example, under the General Retail Industry Award 2020, the adult rate for a Retail Employee Level 1 is $27.81 an hour from 1 July 2026.

Our guide to modern awards explains how to read award rates, and an HR compliance audit can check your payroll.