Wages and Costs

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

This page is divided into four sections:

Wage Conditions

New Employees - are usually paid a reduced wage that reflects the time spent undertaking formal training. You are required to pay Australian apprentices or trainees for time spent in training (off-the job or on-the-job), with the exception of Australian School-based apprentices or trainees, who do not receive payment for time spent in training.
Existing Employees - wages and employment conditions usually remain unchanged when undertaking an apprenticeship or traineeship, however it is important that you obtain further advice.

An existing employee is a person who has been employed by a business for a period of at least three months full-time or twelve months casual, part-time or a combination of both, prior to commencing the Training Contract.

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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 for employees, as well as outline the responsibilities for employees and employers. Award coverage may be specific to an industry, a single employer, a specific class of employer or a specific class of employees.

State or Federal Certified Agreements

Certified Agreements are collective agreements 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 or trainees, to tailor arrangements to meet the needs of the business. This may involve modifying existing award arrangements and/or specifying or simplifying other employment terms and conditions.

For more information on Workplace Agreements visit AWA Online

Wages Information Contacts

Commerce Queensland (members only) on 3842 2244
Wageline on 1300 369 945

The "Apprentices and Trainees Wages and Conditions Order" took effect from 1 January 2000. This State Order establishes a common industrial framework accommodating all private sector apprenticeships and traineeships. Please also note that wages for adult apprentices and trainees under certain industrial arrangements may be paid at a special rate.

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 – Most training of apprentices and trainees in Queensland has 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 and 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 to your needs. Please note that 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 insurance 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. If you employee an Australian apprentice or trainee, they may receive a Payroll Tax Exemption while undertaking their apprenticeship or traineeship.
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 of trainee is responsible for paying a Tuition and/or Student Service Fee directly to the Training Provider, as a contribution to the training they receive. Some employers choose to pay this fee on their employee's behalf
Training Costs – Most training of apprentices and trainees in Queensland has traditionally been funded by the State Government under ‘User Choice' arrangements, though not all traineeships are covered. Some employers choose to fund the training under a user pay's arrangement (known as fee-for-service).

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