Show Me The Money - Professional Managers Australia
No matter how much you enjoy your job, one of the most important aspects is that you are paid – or remunerated – properly for your work.
Remuneration involves more than just the amount of money your employer deposits in your bank account each pay cycle. At the very least it also includes the compulsory superannuation (currently 9 percent) that all employers must pay. It may also include loadings and penalty rates, allowances, non-cash entitlements, performance or bonus pay, commission or other payments or benefits.
Loadings and penalty rates are percentage increases in your base hourly rate for work that is either performed out of hours, on weekends or for some other special reason.
Allowances are amounts paid to you in exchange for some form of burden that you have to bear personally, such as being on-call after hours or using your own car for work.
Your remuneration will depend on the work that you do and the qualifications that you have. Almost all professional employees receive an annual salary and that is designed, in theory, to compensate them for all of the work they perform within any given year.
Your pay may be set by an award, the National Employment Standards or a collective or individual employment agreement.
The National Employment Standards (NES) sets out the legal minimums for employment condition. It is a safety net that ensures pay and conditions cannot fall below a certain level.
Awards are industry, or occupation-based, minimum employment standards which apply in addition to the NES.
Enterprise Bargaining Agreements or collective agreements cover all employees in a workplace. Employees often work together through a union, such as APESMA to negotiate a better deal.
If you are employed on an individual contract you cannot be paid less than the legal minimum. Most professionals are paid more than the legal minimum, so it is important to be aware of what other people performing a similar role are paid. You should always seek professional advice before signing a contract. Many unions, such as APESMA, can provide advice on market rates as well as ensure your contract doesn't contain any nasty surprises.
Unlike most Enterprise Agreements, few individual contracts include an automatic right to an annual pay increase. Some employers have a formal annual appraisal process but it is important to note that even a positive appraisal may not guarantee a pay rise. Ultimately you need to persuade your employer that the work you perform is worth a pay increase.
Overtime is another issue for many employees. You will only automatically be entitled to overtime pay if your Award, Enterprise Agreement or contract of employment specifically provides for it. Your contract may contain a clause to the effect that your salary has been set at a level that takes into account any “reasonable overtime” the employer expects would be required over the year. Notwithstanding this, you may be able to negotiate payment if you will be working more hours than expected, for example, to complete a particularly large job or project.
APESMA members can call 1300 273 762 for advice
Workplace Advice & Support Fact Sheets