What is base rate of pay?
According to Fair Work Act 2009, Section 16, the base rate of pay is the rate the employee gets paid working for ordinary hours. It does not include loadings, overtime or penalty rates, incentive-based payments and bonuses, monetary allowances and any other separately identifiable amounts. Under the national workplace relations system, base pay rates that generally depend on age, job classification and employment category usually come from an enterprise agreement or modern award. If the employee is not covered by an award the national minimum wage applies. Why is base rate of pay important? There are payments under the National Employment Standards (NES) that are paid at the base rate of pay: · Annual leave · Personal leave · Public holiday · Make-up pay relating to jury service · Redundancy pay It is also important to distinguish the base rate of pay from the full-rate of pay. It is defined in Section 18 of the Fair Work Act. It includes incentive-based payments and bonuses, loading, monetary allowances, overtime or penalty rates and any other separately identifiable amounts. When an employer terminates an employee, the full rate of pay is paid to the employee in lieu of the notice – which is the hours the employee would have worked had the employment continued until the end of the minimum period of notice. Source: www.fairwork.gov.au Comments are closed.
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January 2016
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