Manufacturing Award: Pay Rates, Classifications and Obligations

The Fair Work Commission increased Manufacturing Award wages by 3.75% from 1 July 2025. Employers must now review classifications, allowances, and penalty rates to ensure staff are paid correctly and compliance standards are met.

This guide breaks down who the Award covers, how to classify employees, and what pay, leave, and penalty rules apply—so you can meet your obligations confidently and avoid costly back pay or Fair Work issues.

Award Basics

The Manufacturing and Associated Industries Award applies to businesses involved in manufacturing, assembling, processing, fabricating, repairing, or maintaining goods made from materials such as metal, plastics, chemicals, machinery, and electrical components. It also covers related roles, including maintenance workers, technicians, draughtspersons, production planners, and trainee engineers or scientists.

This Award sets the legal minimum pay rates, working hours, leave, and allowances for employees in the manufacturing and engineering sectors. Its purpose is to make sure workers are treated fairly and consistently across the industry.

Employees are classified from C14 (entry-level) to C1 (professional or supervisory level) based on their skills, qualifications, and duties. Apprentices, trainees, and juniors receive a percentage of the adult rate, which increases as they gain experience or age.

It was established under the Fair Work Act 2009, a key employment law. The Fair Work Commission (Australia’s national workplace relations tribunal) reviews and updates the Award, while the Fair Work Ombudsman (another national agency) helps employers and employees understand and follow it.

Often called the Fair Work Manufacturing Award, it’s one of the most significant modern awards in Australia.

Who’s covered under the Manufacturing Award?

The Award covers employers and employees working in:

• Metal, machinery, plastics, and chemical production.
• Engineering and fabrication workshops.
• Assembly, repair, and maintenance of manufactured products.
• Technical, drafting, and planning roles within manufacturing operations.

Common job types include:

• Production and process workers.
• Machine operators and assemblers.
• Fitters, turners, welders, and boilermakers.
• Electrical or mechanical tradespeople.
• Technicians, quality inspectors, and maintenance staff.
• Supervisors, forepersons, and team leaders.
• Apprentices, trainees, and junior workers.

Who isn’t covered under the Manufacturing Award?

The Award doesn’t apply to:

• Plumbers, electricians, or builders covered by construction or electrical awards.
• Cleaners and security staff (unless directly employed by a manufacturing business).
• Gardeners or groundskeepers.
• Workers in industries with their own specific awards, such as the Vehicle Repair, Joinery and Building Trades, or Professional Employees Awards.

If an employee’s main duties fit better under another modern award, that award takes priority.

Classifications and Levels

The Manufacturing Award (Australia) uses a classification system that matches employees to roles based on their skills, qualifications, and duties.

Every full-time, part-time, or casual employee is classified between C14 (entry-level) and C1 (professional level). (Learn more about these employee types in our guide to employment law in Australia.)

For many trades and production roles, C10 is the typical level for a qualified tradesperson who can work on their own without supervision. Higher levels are used for employees who have more advanced technical skills, take on leadership or training duties, or handle more complex work.

These classification levels often line up with formal qualifications—for example, trade certificates, diplomas, or engineering degrees.

For example, someone who has a Certificate III in Engineering and can run the machines on their own would usually sit at C10. If they later learn more and start showing other workers what to do, they might move up to around C7, which means more responsibility and higher pay.

Apprentices, juniors, trainees, and cadets

The Manufacturing Award also covers apprentices, trainees, and cadets who are learning a trade or technical skill while working. Here’s how these differ:

• Apprentices are completing a trade qualification (usually Certificate III) through a 3 or 4-year program in fields like fitting, welding, or machining.
• Junior employees are those under 21 years old who work in manufacturing or support roles.
• Trainees combine paid work and formal training in technical or administrative streams under the National Training Wage (learn more in Schedule G of the Award).
• Technical cadets are studying a diploma or advanced diploma in a relevant technical field while gaining on-the-job experience.
• Technological cadets are completing a bachelor’s degree in engineering, science, or a related discipline while working in a technical role.

All apprentices, trainees, and cadets must have a formal training agreement registered with the relevant state or territory training authority.

Choosing the correct classification

When you’re assigning a classification level:

1. Match duties to role descriptions: Compare the employee’s day-to-day tasks with the role descriptions in Schedule A of the Award to ensure their job duties align with the correct level.
2. Check skills and qualifications: Review the employee’s formal qualifications or demonstrated skills. For example, a Certificate III in Engineering usually aligns with the C10 Tradesperson classification.
3. Put it in writing and review when needed: Note the classification level in the employment contract or onboarding documents and explain it to the employee. If their duties change over time (for example, they start supervising others), their classification may need to be updated.

Pay Rates and Entitlements

The Manufacturing Award sets minimum pay and work conditions for manufacturing, engineering, and production employees.

It covers ordinary hours, overtime, weekends, public holidays, allowances, and leave.

You can’t pay less than the minimum Manufacturing Award pay rates, but you can offer higher pay.

Standard minimum base rates (adult full-time)

Here are the standard minimum rates for full-time adult employees. 

Schedule C of the Award lists the base hourly rates for each classification. Details on penalty and overtime rates are explained in the sections below.

Apprentices, trainees, and cadets

The pay and structure for apprentices, trainees, and cadets depend on their training type.

Each group is paid a percentage of a full trade or professional rate, which increases as they gain more skills and experience.

Apprentices and trainees

• Apprentices are paid according to which year or stage they are in (Stage 1 to Stage 4). 
• Trainees are paid based on the year of their traineeship (usually Year 1 or Year 2). Their pay is set under the National Training Wage rules.

Apprentice and trainee rates depend on age, qualification, and training level. Here’s where to find them: 

• Apprentice minimum rates.
• Trainee minimum rates.

*Please note that the Award has separate rates for adult and non-adult apprentices.

Cadets (technical and technological)

Cadets are paid a percentage of the full award rate, which increases each year or at each stage.

Technical cadets are paid based on their year of training:

For example, a first-year technical cadet studying a Diploma in Engineering earns $14.22 per hour (40% of the C3 rate). By their third year, after gaining more experience and nearing qualification, their pay rises to $24.89 per hour (70% of the C3 rate).

Technology cadets are paid by stage:

For example, a first-stage technological cadet who finished Year 12 of secondary school over 3 years ago starts on $20.30/hour (70% of the C9 rate). By the final stage, they earn $26.10/hour (90% of the C9 rate), then move to full pay within 2 years after completing their program. 

After completing their cadetship, technology cadets move to full pay gradually, starting at 88% of full pay, then 95%, and reaching 100% within 2 years.

Penalty rates

If an employee works outside their ordinary hours, like at night, on weekends, or on public holidays, you’re required to pay them extra. This extra pay is called a penalty rate.

Under the Manufacturing Award, penalty rates are set out in the Award and must always meet at least the minimum required amount. Employers and employees can agree to different work arrangements, but pay can never go below those minimum rates.

Ordinary hours are usually 38 hours per week, worked between 6 am and 6 pm, Monday–Friday, unless another arrangement has been agreed to.

Weekend and public holiday penalties

Here’s what these rates look like for employees working weekends and public holidays:

• Saturday: 150% of the ordinary rate (time and a half).
• Sunday: 200% (double time).
• Public holiday:
  • Day workers/non-continuous shiftworkers: 250% (double time and a half).
  • Continuous shiftworkers: 200% if rostered and the shift falls on a holiday.

For example, an employee earning $30/hour who works on a Sunday must be paid $60/hour (200%) for those hours. 

Overtime rules and rates

Under the Manufacturing Award, overtime applies when an employee works more than 38 hours in a week, or more than 8 hours in a day (unless a different daily arrangement has been agreed to).

When employees work overtime, you’re required to pay them extra:

• For the first 3 hours of overtime, they’re paid 150% of their usual rate (often called time and a half).
• After the first 3 hours, they’re paid 200% of their usual rate (double time).

For example, if an employee earning $30/hour works 2 hours of overtime after their regular shift, they earn $45/hour (150%) for those hours. If they continue working beyond 3 hours of overtime, their pay increases to $60/hour (200%) for the additional time.

Also, if an employee has already gone home and is called back to work, you’re required to pay them for at least 3 hours, even if they work less than this.

For more information on overtime rules and rates, refer to the Award.

Shift loadings

Shift loading is extra pay added to an employee’s base hourly rate for ordinary hours worked outside standard daytime hours (usually 6 am–6 pm, Monday–Friday), or during regular afternoon or night shifts. It applies only to those specific hours, not to the entire week.

Shift loadings apply only to ordinary rostered hours. If an employee works overtime, the overtime rates replace the shift loading for those extra hours.

For example, if an employee works a permanent night shift and normally gets 130%, and then they stay 2 hours late, they don’t get 130% + 150%. Instead, those extra 2 hours are paid at the overtime rate (time-and-a-half or double time), not at the night shift loading rate.

Casual loading

Casual employees don’t have guaranteed hours and don’t receive paid leave like full-time or part-time employees. To make up for this, they get a 25% casual loading: extra pay added on top of their hourly rate. 

They may also receive other entitlements, like shift loadings and penalty rates, depending on when and how they work.

Rest break after overtime

You’re required to give employees a 10-hour break between finishing them overtime and starting their next shift.

If an employee resumes work earlier, overtime rates continue until they’ve had a complete 10-hour rest.

Breaks and allowances

Meal and rest breaks

Employees get a 20-minute unpaid meal break after 5 hours of work.

Continuous shiftworkers receive paid meal breaks.

If an employee works through a meal break, you’re required to pay them at a higher rate for the time they spent working instead of taking a break:

• Ordinary circumstances: 150% of their base rate.
• When receiving a 15% shift loading, which is 115% of their regular rate (for example, for an afternoon shift): 165% of the base rate.
• When receiving a 30% shift loading, which is 130% of their regular rate (for a permanent night shift), 180% of the base rate.
• When working on weekends: 200% of the base rate.

These rates apply only to the time the break was missed, not to the whole shift.

Common allowances

The Award includes several allowances for special duties, hazards, and expenses. Here are some examples from the Fair Work Manufacturing Award pay guide PDF:

Different rates and conditions apply to vehicle manufacturing employees (see Part 9 of the Manufacturing Award to learn more).

Allowance amounts increase each year along with wage reviews. If the conditions for an allowance apply, the employee must be paid that allowance.

Leave entitlements

Leave provisions are set by Part 6 of the Award and the National Employment Standards (also called “NES”: the minimum leave and employment entitlements under the Fair Work Act 2009).

Annual leave

Annual leave is paid time off that employees can use for rest, holidays, or personal time.

• Full-time employees build up 4 weeks of paid leave per year.
• Shiftworkers who regularly work Sundays or public holidays build up 5 weeks per year.

When annual leave is taken, employees are usually paid an extra 17.5% on top of their normal pay.
This is called leave loading, and it’s meant to make up for the penalty rates or overtime they might miss out on while not working.

If an employee normally earns more from shift loadings than 17.5%, you’re required to pay the higher rate instead.

Employees can “cash out” some of their annual leave, but only if:

• Both the employer and employee agree in writing.
• The employee keeps at least 4 weeks of leave in their balance.
• No more than 2 weeks is cashed out within a 12-month period.

Cashed-out leave must be paid at the same rate the employee would receive if they actually took the leave.

Compassionate leave

Compassionate leave includes 2 days paid per occasion for the death or serious illness of a close family member.

Family and domestic violence leave

All employees (including casuals) get 10 days of paid time off every 12 months to manage situations involving family or domestic violence.

Public holidays

Employees can take public holidays off unless they’re asked to work and the request is reasonable. Work done on public holidays must be paid according to the Award’s rules on Ordinary Hours, Overtime, and Penalty Rates.

Employers and employees may agree to replace a public holiday with another day. This means they can work on the holiday at their normal rate and take another agreed day off (which then counts as their public holiday for pay and leave purposes).

Community service leave

Employees who attend jury duty are paid the difference between their normal wages and what the court pays them.

Other NES leave

Employees are entitled to other types of leave under the NES, including personal/carer’s leave, parental leave, and long-service leave. 

Learn more about these types of leave by following the links above or visiting our Australian employment law guide. 

How To Determine Manufacturing Award Coverage

Whether the Manufacturing Award applies depends on what work the business does and what work the employee actually does.

To determine coverage:

If your business’s main activity involves making, assembling, processing, repairing, or packaging goods and materials, it’s likely covered by the Manufacturing Award.

Industries often included are metal fabrication, plastics and chemical production, engineering, and machinery assembly.

Compare each employee’s daily responsibilities with the job levels listed in Schedule A of the Award.

• Production and factory workers: C14–C12.
• Tradespeople and technicians: C10–C8.
• Supervisors or forepersons: C6 or higher.

The classification reflects the tasks the employee really does. Job titles can vary, but pay must be based on the actual work done.

If an employee’s main duties fall under another modern award, that Award takes priority.

Common overlaps include:

• Vehicle Repair, Services and Retail Award 2020.
• Professional Employees Award 2020.
• Building and Construction General On-site Award 2020.

The Fair Work Ombudsman’s “Find My Award” tool or an HR or payroll professional can help you confirm a classification.

When a role includes mixed duties (e.g., both technical and clerical work), the award that covers the employee’s main or most important duties applies.

Manufacturing Award: A practical example

Emma runs a small metal fabrication workshop in Victoria that builds and repairs steel components for machinery. She employs:

• Two qualified welders.
• One machine operator.
• One administrative assistant.

After reviewing the Manufacturing Award, Emma discovers:

• Her welders, doing skilled trade work, are classified under C10 and currently earn $28.12/hour.
• The machine operator doing routine production tasks fits the C12 classification and earns around $25.85/hour.
• Her admin assistant isn’t covered by the Manufacturing Award. Instead, she falls under the Clerks—Private Sector Award 2020.

Outcome:

Emma pays her trades and production staff according to the Manufacturing Award’s minimum rates and penalty provisions, and her admin employee according to the Clerks Award.

This ensures correct pay, lawful entitlements, and full compliance with Fair Work.

Employer Obligations and Compliance Essentials

Employer obligations

To avoid litigation and costly penalties, you should:

• Classify employees correctly under the right award level (C14-C1) based on their duties, not job titles.
• Pay at least the minimum award rate, including overtime, penalty rates, and loadings for weekends, public holidays, and night shifts.
• Apply allowances for tools, meals, or first aid when the conditions apply.
• Follow proper rostering and working hours rules. For example, don’t exceed 38 ordinary hours per week unless overtime has been agreed.
• Provide payslips within 1 working day of payment.
• Keep accurate time and wage records.
• Provide the Fair Work Information Statement and Casual Employment Information Statement to all new hires.

Common mistakes

Some common errors include:

• Misclassifying staff (for example, paying a C10 tradesperson at a C12 rate).
• Using outdated pay rates from the previous financial year.
• Failing to apply penalty rates on weekends or public holidays.
• Not paying applicable allowances for tools, uniforms, or special duties.
• Poor record-keeping makes it difficult to prove compliance during audits.
• Incorrectly engaging workers as contractors when they should be employees under the Award.

Record-keeping and compliance tips

Under the Fair Work Regulation, you’re required to keep clear, accessible records of:

• Employee details (name, status, classification level).
• Hours worked, start and finish times, and overtime hours.
• Wages, allowances, and deductions.
• Leave balances and entitlements.

Records must be:

• Kept for 7 years.
• Legible and in English.
• Available for inspection by the Fair Work Ombudsman if requested.

To stay up to date, you can use the July pay guide to check that your current rates and classifications are still correct under Fair Work’s latest wage increases.

Resources and Links

For further reading and official resources, visit:

• Manufacturing and Associated Industries and Occupations Award 2020 (MA000010): Read the full Fair Work Commission document outlining pay rates, classifications, and employment conditions for manufacturing employees.
• Fair Work Ombudsman – Pay and Conditions Tool (PACT): Estimate pay, allowances, and penalty rates under the Award.
• Fair Work Information Statement: Review essential information every employee must receive on starting a job.
• Protections at Work: Learn about workplace rights and protections against unfair treatment.
• Modern Awards Pay Database: Access the latest Fair Work pay guides and classification details.

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.