Commission only

In a commission-only payment model, employees earn money exclusively from the sales they generate. There is no base salary; instead, their income directly corresponds to their sales performance. This model is common in sales roles, where motivation to sell more is linked directly to financial incentives. However, there are specific legal conditions and industry standards that dictate when and how this payment structure can be applied.

Can employees be paid commission only?

Most employees covered by a modern award must be paid at least the award minimum for every hour they work, so commission can be paid on top of wages but generally cannot replace them. A few awards, such as the Real Estate Industry Award 2020, allow commission-only arrangements for certain experienced sales employees who meet strict conditions and agree in writing. Genuine independent contractors can be paid commission only. For example, a retail salesperson paid only commission with no base wage would usually be underpaid under the General Retail Industry Award 2020.

Read our guide to modern awards or book an HR compliance audit.