Standard rate

The standard rate is a benchmark pay rate within an award used to calculate additional entitlements. For instance, many award allowances are calculated as a percentage of the standard rate. The rate is associated with a specific job classification and reflects the level of skill and responsibility required for that role.

Where the standard rate is used

Many awards express allowances as a percentage of the standard rate, which is usually the weekly minimum wage for a specified classification in that award. When award minimum rates rise after the Annual Wage Review, these allowances rise too. Expense-related allowances, such as meal or vehicle allowances, are usually adjusted separately in line with price changes. For example, an award might set a first aid allowance as a small percentage of the standard rate per week, so it increases automatically each July.

Read our guide to modern awards.