Wage Compliance in Australia: Ensuring You Meet All Pay Obligations
Introduction
Wage compliance means ensuring every employee is paid correctly, fairly, and in line with the law. For Australian businesses, it’s never been more critical.
What Does Wage Compliance Involve?
- Paying award or agreement rates
- Meeting NES minimums (e.g. annual leave, sick leave)
- Calculating overtime and penalty rates
- Applying allowances (uniforms, travel, tools)
- Making super contributions
- Keeping accurate records
Why Wage Compliance Matters
- Avoiding Legal Trouble – Civil and criminal penalties apply for non-compliance.
- Protecting Your Reputation – Wage scandals damage brand trust.
- Employee Satisfaction – Fair pay builds retention and loyalty.
- Director Liability – Leaders are now personally liable for breaches.
Common Pitfalls
- Misclassification under awards
- Salary models that don’t cover penalties
- Errors in super calculations
- Missing birthday rate increases
- Poor time tracking
Compliance Best Practices
- Use award-compliant payroll systems
- Review pay rates after FWC’s July wage review
- Automate time and attendance
- Train payroll and HR teams on award rules
- Audit frequently
Role of Subi
Subi helps businesses streamline compliance. It compares actual pay vs entitlements across awards, flags discrepancies, and simplifies reporting for legal and compliance teams.
Stay Ahead of Change
Laws change frequently—so must your compliance processes.Wage compliance is not one-and-done; it’s continuous.