What Are Salaried Workers?
Salaried workers are employees who receive a fixed annual income, divided into regular pay periods (weekly, fortnightly, or monthly), regardless of the number of hours worked in each cycle. This is distinct from hourly workers, who are paid based on the exact hours worked.
In Australia, salaried workers are commonly employed in full-time or part-time roles and are typically covered by the National Employment Standards (NES), modern awards, or enterprise agreements. They’re entitled to a suite of workplace benefits, including paid leave, superannuation, and protection under the Fair Work Act 2009.
Fair Work Ombudsman – Salaried Employees
Key Features of Salaried Employment
- Fixed Annual Salary: Payment is consistent across pay periods, irrespective of overtime or fluctuations in hours.
- Inclusive of Certain Benefits: Salaries may include loadings, allowances, and overtime if agreed to in writing and compliant with Fair Work rules.
- Predictable Pay: Regular income promotes financial stability and easier personal budgeting.
- Minimum Conditions Apply: Salaried workers must not receive less than the minimum entitlements set out in the applicable modern award or NES.
Salary vs Wages: What’s the Difference?
| Criteria |
Salaried Workers |
Hourly Workers |
| Pay Structure |
Fixed annual salary divided across pay periods |
Paid per hour worked |
| Overtime |
May be included in salary (if compliant) |
Usually paid separately |
| Timesheets |
Often not required (but may be for tracking) |
Generally required to record hours |
| Flexibility |
Less variation in pay |
Pay varies based on hours worked |
| Leave Entitlements |
Accrued and paid |
Accrued (if permanent), unpaid if casual |
Are Salaried Workers Entitled to Overtime?
Yes, but with conditions.
Under some modern awards, salaried arrangements can include overtime, penalty rates, and allowances – provided the agreement meets minimum entitlements and is properly documented. Employers must ensure that:
- The employee is better off overall than they would be under standard award conditions.
- Hours worked are monitored to ensure no underpayment occurs.
- Any annualised salary arrangements meet the specific award’s requirements (such as reconciliation of hours and written records).
Failure to meet these conditions can result in breaches of workplace law and penalties.
Pros and Cons of Salaried Arrangements
Advantages for Employees:
- Predictable income stream
- Simpler payslips and budgeting
- Often linked with higher-level or professional roles
Advantages for Employers:
- Easier payroll forecasting
- Reduces administration from variable hours
- Encourages productivity over time-tracking
Potential Downsides:
- Risk of unpaid overtime if not managed
- Less flexibility for workers with fluctuating workloads
- Can lead to disengagement if workloads increase but pay remains fixed
Employer Responsibilities
Employers must ensure that salaried workers are:
- Paid at least the minimum wage (as per award or agreement)
- Provided with payslips for each pay cycle
- Accruing the correct leave entitlements (e.g., annual leave, sick leave)
- Receiving superannuation contributions (currently 11.5% for FY24–25)
- Covered by written contracts that clearly outline terms
Accurate record-keeping is essential to prove compliance, especially under annualised salary arrangements.
Learn about Legal Pay Rates
How Microkeeper Supports Salaried Workers
Microkeeper’s all-in-one workforce management software simplifies the management of salaried employees by offering:
Frequently Asked Questions
Do salaried employees need to submit timesheets?
Not always. However, tracking hours may be necessary for compliance with award-based salary setups, job costing, or workforce planning.
Can a salaried employee be paid less than an award?
No. Even with a fixed salary, the total annual pay must exceed the minimum entitlements under the relevant award or agreement.
Is a casual worker ever considered salaried?
No. Casual workers are paid per hour and do not receive a salary, even if they work regular shifts.
Final Thoughts
Salaried employment can provide structure, stability, and simplicity for both businesses and employees, but only if handled correctly. Employers must ensure that salary arrangements comply with all workplace laws, especially under relevant awards.
With Microkeeper, managing salaried employees becomes seamless. From automated pay cycles to leave management and compliance tools, we make sure your business stays on track.
Disclaimer: This content is general information only and not legal advice. Please consult the Fair Work Ombudsman or an employment lawyer for specific guidance related to your circumstances.
