Wages & Costs

Apprentices and trainees are subject to legislation relating to their wages and conditions of employment.

Wage Conditions  

New Employees – are usually paid a reduced wage that reflects the time spent undertaking formal training. Australian apprentices/trainees are required to be paid for time spent in training (off-the job or on-the-job), with the exception of Australian School-based apprentices or trainees.

Existing Employees – wages and employment conditions usually remain unchanged when undertaking an apprenticeship/traineeship, however it is important to obtain further advice. An existing employee is a person employed by a business for at least three months full-time or twelve months casual, part-time (or a combination of both), prior to commencing the Training Contract.

How wages are determined  

Wages for full-time, part-time and Australian School-based Apprentices and Trainees vary across qualifications and are determined by a number of industrial relations instruments including:  

State or Federal Awards

Awards regulate the terms and conditions of employment and outline the responsibilities for employees and employers. Award coverage may be specific to an industry, a single employer, a specific class of employer or employees.  

State or Federal Certified Agreements

Certified Agreements are collective between an employer and the union/s or between an employer and its employees.

Queensland or Australian Workplace Agreements

Workplace Agreements are negotiated between an employer and an individual employee or an employer and an individual group of employees who have some common denominator. They are designed to allow employers and apprentices/trainees to tailor arrangements to meet the needs of the business. This may involve modifying existing award arrangements or specifying other employment terms and conditions.  

Wages Information Contact

Fair Work on 13 13 94

 

Costs  

When employing an apprentice or trainee you need to consider not only the benefits to your business, but also the costs associated with taking on an additional employee. Some of the potential costs you need to consider include:  

• Training costs – In Queensland, most training of apprentices and trainees have traditionally been funded by the State Government under ‘User Choice’ arrangements, though not all traineeships are covered. In many cases employers choose to fund the training under a user pay’s or fee-for-service arrangement. User Choice is a term used to describe the funding and policies which allow employers and their apprentices/trainees to choose an approved training provider and negotiate key aspects of the training. You will need to reach an agreement with your training provider as to which method of funding is most suitable. In some industries or qualification outcomes, only one training provider may be available.
• Employment costs – These may include advertising the position, engaging an employment agency and the administrative costs involved in employing a new employee.
• Workers Compensation Insurance – This insurance covers employers against the cost of statutory claims and possible common law claims. This ensures that an employee who is injured at work receives financial support and rehabilitation following an injury.
• Superannuation – As an employer you have some obligations to pay superannuation for your employees. The Superannuation Guarantee (SG) rate is currently 9% of the employee's wage/salary. Sunsuper is Queensland's largest private sector superannuation fund, and one of the fastest growing funds in Australia.
• Tools and Uniform Allowance – Some employers may be required to pay a Tool and/or Uniform Allowance under their employees Award or Workplace Agreement.
• Payroll Tax – This is a State based tax which only applies to organisations whose annual payroll is over a set amount. Your Australian apprentice or trainee, may receive a Payroll Tax Exemption.
  General employment entitlements – These include wages, sick leave, annual leave, long service leave and other employment entitlements.
  Specific Apprenticeship and Traineeship Costs
• Student Fees - In some instances (Certificate Level III or higher) the apprentice/trainee is responsible for paying a Tuition and/or Student Service Fee to the training provider. Some employers choose to pay this fee on their employee's behalf