If your business employs receptionists, payroll administrators, or other clerical roles, you’ll need to understand the Clerks—Private Sector Award 2020 [MA000002].
Unfortunately, these minimum employment rules are quite complex, and breaking one can lead to hefty fees, investigations, and reputational damage for your business. Fortunately, we’re here to help.
Below, we explain who the Clerks Award covers, plus how to classify employees, calculate entitlements, and stay compliant with Fair Work rules.
Key Takeaways
- The Clerks—Private Sector Award 2020 sets minimum pay and employment conditions for private-sector clerical and administrative employees under the Fair Work Act 2009.
- Pay rates and entitlements are reviewed annually. As of 1 July 2025, wages increased by 3.5%, with Level 1 clerks earning at least $25.74/hour.
- Employers must ensure compliance by classifying roles correctly, tracking hours and breaks, and keeping accurate records for at least 7 years.
Award Basics
The Clerks—Private Sector Award 2020 outlines pay, conditions, and entitlements for administrative and clerical employees in Australia’s private sector. Coverage depends on what an employee does (not just what their job title is) as set out under the Fair Work Act: a key employment law in Australia.
The Award applies across industries, such as finance, logistics, healthcare, real estate, and consulting. It covers office-based roles that involve data entry, payroll, scheduling, record keeping, and customer service.
Employees covered by this Award are grouped into classification levels based on their skills, experience, and level of responsibility. These levels determine their pay rates and other entitlements.
Employees under 21 receive junior rates, with pay increasing as they get older and gain experience.
The Award also works alongside the National Employment Standards (NES), which outline 11 key entitlements, including annual leave and notice periods. Together, the NES and the Clerks Award ensure consistent minimum rights for all private-sector clerical employees.
Did You Know?
The Award is divided into clauses and schedules. Clauses outline the main employment conditions (like hours and leave) while schedules contain detailed tables such as classification levels and allowances.
Who’s covered under the Clerks Award?
Common covered roles include:
- Receptionists and front-office staff.
- Payroll and accounts clerks.
- Data entry or customer service officers.
- Administrative or office assistants.
- Executive and personal assistants.
- Office coordinators and team leaders.
Who isn’t covered under the Clerks Award?
This Award doesn’t apply to employees covered by other modern awards. This includes, but isn’t limited to:
- Legal Services Award 2020 (for paralegals or legal secretaries).
- Real Estate Industry Award 2020.
- Banking, Finance and Insurance Award 2020.
Classifications & Levels
Classification levels in the Clerks Award Australia reflect an employee’s skills, level of supervision, and responsibility. As an employer, you can match each role to the Award’s criteria for the correct pay and entitlements (find these in Schedule A).
The levels apply to full-time, part-time, and casual staff. Pay, leave, and overtime may vary by employment type. (Learn more about these employee types in our Australian employment law guide.)
| Level | Typical role |
| Level 1 | Entry-level clerical work involving routine tasks under close supervision |
| Level 2 | More experienced administrative work with moderate independence and limited decision-making |
| Level 3 | Higher-level tasks such as payroll, record management, or partial supervision of others |
| Level 4+ | Senior roles, including team leaders, office managers, or staff with broader accountability |
Employees can move up levels based on their years of service and competence. For example, Clerks Award Level 2 and Level 3 employees should move up a level if they regularly perform higher duties.
When you’re classifying roles, consider all of the following:
- The primary duties performed.
- The degree of supervision or autonomy.
- Whether higher-level responsibilities are regularly required.
Pay Rates & Entitlements
The Clerks Award sets minimum pay for clerical and administrative employees and is reviewed annually by the Fair Work Commission (Australia’s national workplace relations tribunal). As of 1 July 2025, rates rose by 3.5%.
Current rates can be found in the Fair Work Ombudsman’s pay and wages or the Fair Work Commission’s Modern Awards Pay Database. Enter the employee’s Award level and employment type to find the correct rate. Always check the latest review to avoid underpaying staff.
Did You Know?
The Fair Work Ombudsman is the national agency that provides advice and enforces compliance with workplace laws.
Minimum base rates (adults)
Here’s what you’re supposed to pay employees according to their level:
| Classification | Weekly rate ($) | Hourly rate ($) |
| Level 1 (Year 1) | 978.20 | 25.74 |
| Level 2 (Year 1) | 1,068.40 | 28.12 |
| Level 3 | 1,128.50 | 29.70 |
| Level 4 | 1,185.10 | 31.19 |
| Level 5 | 1,233.20 | 32.45 |
| *Current as of October 2025; based on the Award guide, which was last updated 1 July 2025. | ||
You may pay higher wages but can’t go below these minimum adult rates.
For the minimum rates that apply to employees under 21, see Clause 16.4 of the Award or the Fair Work Ombudsman’s guide to junior pay rates.
Penalty rates
Employees who work outside ordinary hours are entitled to “penalty rates”: higher pay for working these outside hours. Penalty rates are shown as a percentage of an employee’s usual hourly rate. For example, if they earn 125% of their base rate, they earn 25% extra.
Employees working on weekends and public holidays receive the following penalty rates:
- Saturday (before 12:30 p.m.): 125% of base rate.
- Sunday: 200%.
- Public holidays: 250%.
For example, a Level 3 clerk earning $29.70/hour must be paid $59.40/hour on a Sunday.
You can use the Fair Work Pay Calculator to check penalty rates.
Loadings
Under the Clerks Award, loading refers to an additional percentage added to an employee’s base rate to compensate for specific work conditions. These conditions include missing out on paid leave (for casual employees) or not earning penalties while on leave (for employees who take annual paid leave).
- Casual loading: Casual employees receive a 25% loading instead of paid leave and other entitlements. You have to factor this into their overtime and penalty rate calculations.
- Annual leave loading: Employees taking paid annual leave receive an additional 17.5% on top of their ordinary pay for the duration of that leave, unless they’d earn more through penalty rates during that period.
Did You Know?
The NES sets out leave entitlements for most employees in Australia. Full and part-time employees get paid annual leave, which they can use for any purpose they want. Learn more in our Australian employment law guide or in the Fair Work Ombudsman’s fact sheet.
Overtime rules
When employees work beyond their ordinary rostered hours, they must be paid overtime rates instead of their regular hourly rate. This usually applies when they work beyond 38 hours a week or 10 hours in a single day.
- For the first 2 hours beyond ordinary hours, they receive 150% of their base rate (time and a half).
- For all hours after the first 2 hours, they receive 200% of the base rate (double time).
For casual employees, calculate overtime after adding the 25% loading.
Special rules apply when employees work through meal breaks or beyond their rostered hours, which can be found in Clause 21 and Clause 15.
Breaks & allowances
Breaks
Employees must take the following breaks:
- Meal break: At least 30 minutes unpaid after 5 continuous hours.
- Rest break: 1 paid 10-minute break every 4 hours of continuous work.
You’re required to include these Clerks Award breaks in rosters and payroll records.
Allowances
Employees may be entitled to additional payments, called “allowances,” when certain conditions apply. These allowances compensate for extra costs or responsibilities related to their work:
- Meal allowance ($19.93/occasion): Payable when an employee is required to work overtime without reasonable notice and must buy a meal.
- Vehicle allowance ($0.98/km): Applies when an employee uses their own car for authorised business travel.
- Laundry allowance ($3.55/week): Paid to full-time employees who must wash and maintain required work uniforms at their own expense.
- First-aid allowance ($16.03/week): Applies when a qualified employee is appointed by the employer to perform first-aid duties.
These allowances are adjusted annually in Schedule C of the Award.
You’re required to show them clearly on payslips and include them in wage records.
How To Determine Clerks Award Coverage
Before setting pay rates or entitlements, it’s a good idea for you to confirm whether a role is covered by the Award.
The Award generally applies to clerical and administrative employees in private-sector businesses such as finance, logistics, healthcare, real estate, professional services, and consulting. It covers clerical tasks such as data entry, payroll, recordkeeping, correspondence, and customer communication.
To determine coverage:
- Review the role’s main duties. If your employee’s work involves office administration or support functions, the Award likely applies.
- Check your business type. The Award applies to most private-sector offices but may exclude government or community sector roles.
- Identify exclusions. Employees already covered under another modern Award—such as the Aged Care Award 2010, Health Professionals and Support Services Award 2020, or Professional Employees Award 2020—aren’t covered by this Award.
- Confirming classification level. Use Schedule A to match the employee’s skills, experience, and supervision level to the correct classification (Levels 1–5).
Clerks’ Award: A practical example
Mia, a 20-year-old part-time administrative assistant at a logistics company, works Monday–Friday from 9 a.m. to 3 p.m. She’s classified at Level 2 (junior rate) under the Clerks Award with 10 months of experience.
Here’s how her entitlements apply:
- She’s paid the Level 2 junior rate because she’s under 21.
- When she works overtime, she receives 150% of her usual rate for the first 2 hours and 200% after that.
- When she misses a 30-minute meal break after 5 continuous hours of work, she gets a $19.93 meal allowance.
- When taking paid leave, she receives 17.5% leave loading.
This example shows how age, classification, and working hours determine pay, overtime, and allowances under the clerical pay framework.
Employer Obligations & Record-Keeping
Employer obligations
To comply with the Clerks Award and the Fair Work Act 2009, employers must meet clear requirements for pay, classification, and documentation. Following these rules ensures compliance, transparency, and fairness across the workplace.
Here are your obligations:
- Classify employees correctly from Level 1–5 based on their duties and experience.
- Apply current Clerks Award pay rates and update payroll each July after the Fair Work Commission’s annual wage review.
- Keep accurate payroll and attendance records to verify hours worked and entitlements.
- Provide payslips within 1 business day of payment.
- Give new employees the Fair Work Information Statement at the start of employment.
- Keep clear employment and wage records to demonstrate compliance during audits.
Employers who breach these rules risk penalties of up to $19,800 for individuals or $99,000 for companies per breach.
Note: Employers must also comply with broader requirements under the NES, including termination, redundancy pay, and notice periods. Learn more at the Fair Work Ombudsman’s termination and redundancy guide.
Record-keeping
Keeping complete, legible records is one of the most important obligations under the Fair Work Act 2009. Accurate documentation protects you against back-pay claims (about missing pay or entitlements) and ensures Fair Work inspectors can verify compliance.
Here’s how to comply with recordkeeping obligations:
- Retain wage and time records for at least 7 years, in English and in a form that’s accessible to inspectors.
- Document ordinary hours, overtime, penalty hours, and any allowances or loadings.
- Keep separate files for casual and part-time employees, including written agreements.
- Track all leave balances and usage, including annual and other types of leave.
Other record-keeping obligations apply. For full details on required documentation and record-retention rules, see the Award and the Fair Work Ombudsman’s record-keeping page.
Common mistakes
- Not confirming part-time or flexible-hours arrangements in writing.
- Failing to update junior rates when employees turn 21 and become entitled to adult pay.
- Misclassifying employees at a lower level than their actual duties justify.
- Assuming salaried staff are exempt from minimum Award entitlements, such as overtime or penalties.
- Overlooking record-keeping obligations, including payslips, leave balances, and allowances.
Resources and Links
For further reading and official resources, visit:
- Clerks—Private Sector Award 2020 (MA000002): The full Fair Work Commission document detailing all pay rates, conditions, and classifications.
- Fair Work Ombudsman: Pay and Conditions: Find pay guides, calculators, and employer obligations under the Fair Work Act.
- Fair Work Information Statement: Key information every new employee must receive when starting a job.
- Fair Work Pay Calculator: Estimate pay, penalty, and overtime rates.
- Modern Awards Pay Database: Check up-to-date award rates for all classifications.
The Clerks—Private Sector Award 2020 sets the minimum pay rates, hours, and employment conditions for clerical and administrative employees across Australia’s private sector under the Fair Work Act 2009.
As of 1 July 2025, Level 4 full-time clerks earn $31.19/hour according to the Fair Work Pay Guide.
The base hourly rate for a Level 1 full-time clerk is $25.74, while Level 5 employees can earn up to $32.45.
Disclaimer
The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.