Waste Management Award: Pay Rates, Classifications, and Obligations

From 1 July 2025, the Fair Work Commission (FWC) increased modern award wages in Australia by 3.5%. Under the Waste Management Award, this increase affected both base pay rates and all-purpose allowances, like the industry allowance.

This means employers should carefully review overtime, penalties, and leave loading when calculating an employee’s ordinary rate of pay to avoid underpayment.

In this guide, we explain who the Waste Management Award covers, how to classify employees, and what pay, leave, and penalty rules apply.

The Waste Management Award: A Quick Summary for Busy Managers

Pressed for time? Get the essentials here:

The Waste Management Award [MA000043] sets minimum employment standards and pay rates for employees in the waste management industry, including those working for businesses that handle waste materials or operate waste management facilities.

To help ensure compliance, managers need to consider:

• Award coverage: Whether the employee is covered by the Waste Management Award and not another modern award that could fit more appropriately, like the Road Transport and Distribution Award.
• Employee type: Whether the employee works full-time, part-time, or casual hours in the waste management industry.
• Employee classification: Under the Waste Management Award, classifications range from Level 1 (depot hand in training) to Level 9 (driver of a double-articulated vehicle).
• Hours and timing of work: Whether the employee works weekends, public holidays, or overtime.

Don’t get stung by the following:

• Overtime triggers. For the Waste Management Award, these include daily hours, weekly hours, minimum breaks between shifts, and continuous work across days.
• Misclassifying drivers and plant operators, confusing day work and shiftwork, and mixing public-sector and private-contractor arrangements.

Coming up: Award dates and deadlines you need to know

Award Basics

The Waste Management Award, or Waste Award, is a modern national workplace award in Australia. It’s made by the FWC under the Commonwealth Fair Work Act 2009, one of Australia’s most significant employment laws.

The Award outlines the minimum employment conditions for employers and employees in the waste management industry, which include pay rates, working hours, and leave entitlements. It’s intended to ensure employees receive fair treatment and correct entitlements under Fair Work rules.

Employees covered by the Waste Management Award are also entitled to the National Employment Standards (NES). These apply to almost all employees in Australia and provide 11 basic entitlements like annual leave and notice of termination.

Who’s covered under the Waste Award?

The Waste Management Award applies to employers in the waste management industry as well as their employees who fall within the Award’s classifications. For example, those who:

• Collect, handle, recycle, transport, or dispose of any type of waste material.
• Operate transfer stations, treatment plants, yards, or terminals dealing with waste. 
• Operate landfill sites, incinerators, recycling depots, and compost facilities, along with any alternative waste treatment facilities.

Common roles covered by the Award include:

• Labourers or depot employees.
• Attendants at waste management facilities.
• Process workers or operators of incinerators.
• Truck drivers transporting sanitary waste.
• Offsiders, runners, or drivers of vehicles and trucks, such as road sweepers, earthmoving plant equipment, and loading cranes mounted on trucks.

Also covered by the Award are labour-hire businesses hiring out workers to the waste management industry.

Who isn’t covered under the Waste Award?

The Award doesn’t cover:

• Drivers who aren’t working in the waste management industry.
• Employees covered by another modern award.
• Anyone the Fair Work Act 2009 explicitly excludes from Award coverage.

It also doesn’t apply to employees or employers covered by: 

• A modern enterprise award or enterprise instrument.
• A State reference public sector modern award or transitional award. 

Coverage self-check: Does the Waste Award apply?

If you’re unsure whether the Award applies to you or your employees, check these statements:

• I operate a waste management or resource recovery business, or a business that provides waste-related services, with operations including waste collection, recycling, landfill operations, transfer stations, sorting or processing of waste, or related environmental services.
• The employee works in a waste management role, such as:
  • Waste collection (including driving or offsiding).
  • Recycling or sorting.
  • Landfill or waste transfer station operations. 
  • Waste processing.
• The employee’s role falls within the classifications and types of work covered by the Waste Management Award, based on the tasks they perform each workday, not just their job title.
• The employee isn’t a managerial or professional employee who genuinely fits within a different higher-level classification under another modern award.
• The employee isn’t covered by a different modern award that more appropriately matches their primary duties. For example, the Road Transport and Distribution Award is likely to apply to employees whose main role is long-distance general freight driving, even though it may also cover transporting waste materials.
• The employee isn’t covered by a state government award. For example, a waste worker employed directly by a state government might be covered by a state award rather than the Waste Management Award.
• The employee isn’t covered by an enterprise agreement (EA). If they are, the agreement must meet the Fair Work Commission’s Better Off Overall Test (BOOT).

If these statements apply, the employee is likely covered by the Waste Management Award 2020.

Determining Waste Award [MA000043] Requirements

Coverage under the Waste Management Award depends on the type of employment and the employee’s role and classification level.

Employment types

The Award divides employees into 3 types: full-time, part-time, and casual, which includes day workers and shiftworkers.

Full-time employees

Full-time employees under the Award work an average of 38 ordinary hours per week. Any hours worked beyond this are paid at overtime rates.

For day workers, ordinary hours are 4:00 am to 5:00 pm, Monday to Friday, for no more than 8 hours per day and a maximum of 28 days. These hours are worked continuously, except for agreed meal breaks (covered below). 

Part-time employees

Part-timers work less than the average of 38 ordinary hours per week. They have a reasonably predictable schedule and are engaged for at least 4 hours per workday. They receive the same entitlements as full-time employees, but on a pro rata basis.

Casual employees

Casuals work on an intermittent or irregular basis. They’re also paid a higher hourly rate than full-time or part-time employees. This includes a 25% casual loading to make up for the lack of entitlements permanent employees receive.

Casual employees are entitled to overtime rates for any work they do that exceeds 38 hours per week. They must also be paid for a minimum of 4 hours each day they’re engaged, even if they work fewer than 4 hours that day.

Waste Management Award classifications

Employees in the waste management industry are classified into levels (1–9) based on their duties, skills, qualifications, experience, and responsibilities.

For details on Levels 6–9, refer to the Award.

Waste Management Award Pay Rates and Entitlements Overview

Minimum base rates

The Waste Management Award sets the minimum pay for employees in the waste management industry. These rates are updated each year, and from 1 July 2025, they increased by 3.5%.

The Award also includes an industry allowance, which reflects the nature of waste management work. It’s an all-purpose allowance, meaning it counts towards overtime, penalty rates, and leave. From 1 July 2025, the industry allowance is $117.40 per week for full-timers, or $3.09 per hour for part-timers and casuals.

Remember: Always use the base rate inclusive of the industry allowance when calculating penalty rates, overtime, and leave.

If an employee works more than one classification level in a day, they must be paid at the highest rate for the whole day and given at least 7 days’ notice before being moved to a lower level.

For details on pay rates for junior employees and trainees, refer to the Award.

Penalty rates

Full-time, part-time, and casual employees (both day workers and shiftworkers) must be paid penalty rates when they work certain times or days within their ordinary hours.

For day workers, any work on Saturday or Sunday counts as overtime because their ordinary hours are Monday to Friday. If they agree to work on the weekend, overtime rates apply.

For shiftworkers, it’s different. If they’re rostered to work on a weekend as part of their normal schedule, they’ll be paid the applicable weekend penalty rate, not overtime. However, if they’re not normally rostered to work on weekends but are asked to work an extra shift on Saturday or Sunday, they’ll be paid at overtime rates for that shift. 

Overtime rules and rates

Waste management day workers who work outside ordinary hours on Monday to Friday or at any time on Saturday must be paid overtime at the following rates:

• Full-time and part-time day workers: 150% (first 2 hours); 200% after.
• Casual day workers: 160% (first 2 hours); 210% after.

There’s also a flat 200% overtime rate for any hours worked on a Sunday.

Shiftworkers must receive the above overtime rates instead of their usual shiftwork rates if:

• They weren’t given at least 48 hours’ notice of the shift.
• The shift isn’t part of their regular roster.
• The shift is either outside their ordinary rostered hours or longer than 8 hours.

When any employee works overtime, they must be given at least 10 consecutive hours off between shifts.

An employer and employee can also agree in writing for the employee to take time off instead of being paid for specific overtime hours worked.

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

Breaks

The Award sets out these break types:

Allowances 

Under the Award, 2 types of allowances are recognised: 

• Wage-related (extra pay for particular duties or working conditions).
• Expense-related (reimbursement for certain work costs).

Some of the allowances contained in the Award include the following:

For further details of these allowances, check the Award.

Leave entitlements

Most leave comes from the NES, which applies to employees regardless of the award covering them. The Waste Management Award then adds extra rules, especially in relation to annual leave.

Annual leave

These are the fundamentals you need to know:

• Full-time and part-time employees (not casual employees) get:
  • 4 weeks of paid annual leave per year (pro rata for part-time).
  • 5 weeks if they regularly work Sundays and public holidays on a continuous shift roster.
• Employees on annual leave must be paid a shift penalty on top of their base rate of pay as follows:
  • Day workers receive the higher of 17.5% annual leave loading or weekend penalty rates when on leave, but not both.
  • Shiftworkers are paid the higher of 17.5% annual leave loading or their shift and weekend penalties, not both.
• Employers and employees can agree to delay payment of the annual leave loading for single-day absences until the employee has taken at least 5 consecutive days of annual leave.
• Employees may cash out accrued annual leave under a written agreement with their employer, but only up to 2 weeks per year. The agreement must not result in the employee having less than 4 weeks of accrued annual leave.

Other NES leave

Both the NES and the Award cover other types of leave, including:

• Personal/carer’s leave
• Compassionate leave
• Parental leave and related entitlements
• Community service leave
• Family and domestic violence leave

How To Determine Waste Management Award Coverage

To work out which minimum pay rates and conditions you need to follow, you should first check whether the Award actually covers your employees.

Waste Award [MA000043]: A practical, real-world example 

Mark is a 41-year-old driver of a rear-lift waste-collection vehicle (i.e., a garbage truck) with a GVM of approximately 20 tonnes. He’s employed full-time by a private waste collection contractor, and he: 

• Has worked in the waste and recycling industry for 7 years.
• Drives his waste collection vehicle on residential and commercial routes to service local councils as well as commercial customers.
• Works Monday to Friday, rostered from 5:30 am to 1:30 pm, with a 30-minute unpaid meal break on each work day, and occasionally works from 7:30 am to 11:30 am on public holidays that fall on a weekday. 
• Is in sole charge of the vehicle while on waste collection runs, exercising independent judgement while driving and conducting collections, and taking responsibility for vehicle safety, load management, and public safety.
• Works with 2 crew members on his routes, who ride in the vehicle with him and serve as “runners,” assisting with bin handling, manual loading, and route safety.
• Manages route sequencing and traffic hazards independently, and completes run sheets and electronic records.
• Operates hydraulic lifting equipment to empty bins safely and efficiently.

How the Award applies: 

• Coverage: Mark is covered under the Waste Management Award as a driver of a specialised waste-collection vehicle for a private waste-collection contractor.
• Classification and base rate: Mark is a driver in sole charge of a waste management vehicle weighing between 14 and 30 tonnes GVM. He’s classified as Level 5 under the Waste Management Award. His minimum pay is $1,040.20 per week ($27.37 per hour), plus the industry allowance of $117.40 per week ($3.09 per hour), giving a total minimum of $1,157.60 per week ($30.46 per hour).
• Ordinary hours: Mark’s rostered hours of 5:30 am to 1:30 pm, Monday to Friday, fall within the Award’s definition of ordinary hours for waste collection operations (between 4:00 am and 5:00 pm Monday to Friday).
• Penalty rates: Mark doesn’t receive any penalty rates during his normal working week, which is within ordinary hours. However, whenever he works from 7:30 am to 11:30 am on a public holiday that falls on a weekday, he’s entitled to 150% of the ordinary hourly rate for those hours worked.
• Allowances: Mark’s not entitled to a leading hand allowance under the Award because the minimum requirement is to be in charge of 4–8 employees. He also receives the all-purpose industry allowance, covered above.
• Breaks: Because Mark works more than 5 hours per day, he’s entitled to an unpaid meal break of 30–60 minutes within 5 hours and 15 minutes of starting work. 

Common scenarios and compliance tips

Let’s look at the key checks to make for some common scenarios.

1. A private waste contractor hires a “driver” who sometimes drives alone and sometimes works as an offsider

Key checks:

• Confirm whether the employee is in sole charge of the vehicle when they’re driving, and not just doing offsider tasks.
• Classify the employee based on the highest level of work they regularly do, and not just their job title.
• Ensure the correct classification rate applies on days the employee is driving, even if they do offsider work on other days, and apply weekend and public holiday penalty rates when the employee’s ordinary hours fall on those days.
• Check overtime triggers where hours exceed ordinary limits, regardless of whether the employee is driving or doing offsider work.

2. A recycling facility operates with extended hours and introduces afternoon and night shifts

Key checks:

• Determine whether employees are day workers or shiftworkers under the Award (work done during late hours doesn’t automatically mean shiftwork). If they’re engaged as shiftworkers, apply the correct afternoon or night shift penalties.
• Ensure shift penalties are applied only during ordinary shift hours, with overtime applying outside those hours.
• Confirm correct treatment of weekend and public holiday shifts, particularly where shift penalties and weekend penalties intersect.
• Review annual leave payments to ensure the higher of the leave loading or shift penalties is paid when employees take annual leave.

3. A council outsources waste collection to a private contractor, but retains some in-house waste management staff

Key checks:

• Confirm which workers are employed directly by the council and which are employed by the private contractor, and avoid applying council pay structures, allowances, or rules on hours to contractor employees, unless these are lawfully incorporated into employment agreements.
• Make sure council employees remain covered by the relevant state public sector award or council enterprise agreement, not the Waste Management Award.
• Ensure contractor employees are correctly covered by the Waste Management Award, even when working exclusively on council contracts.
• Check that contractor employees receive Award penalties, overtime, and leave entitlements, and not council-based conditions relating to these.

Common employer mistakes to avoid

To ensure compliance and fair practice, avoid these common errors:

• Misclassifying drivers and plant operators, especially when higher classifications apply due to vehicle type, plant tickets, skill level, or responsibility (such as being in sole charge of a vehicle).
• Failing to pay the correct penalties, particularly when operations take place during early mornings, nights, weekends, or public holidays.
• Relying on “above-award” salaries or flat rates without a valid Award-related set-off mechanism, and failing to regularly test whether employees remain better off overall once overtime, penalties, allowances, and Award rate increases are taken into account. 

Glossary

Above-award salary

A salary higher than the Award minimum, intended to cover extra pay like overtime, penalties, or allowances. Employees must still be better off overall than under the Award.

Afternoon shift

A shift where the employee’s ordinary hours finish after 6:30 pm, but no later than 12:30 am. Even if the shift runs slightly past midnight, it’s still treated as the same day under the Award.

All-purpose allowance

An allowance that counts towards all pay calculations, including overtime, penalty rates, and leave, such as the industry allowance.

BOOT (better off overall test)

The FWC’s test to ensure employees are at least as well off under an enterprise agreement as they would be under the Award and NES.

Day work

Work done between 4:00 am and 5:00 pm on Monday to Friday. It’s essentially the non-shiftwork arrangement under the Award.

Night shift

A shift in which an employee’s ordinary hours finish after 12.30 am and either at or before 8:30 am.

Shiftwork

Work that happens over at least 5 consecutive days and follows a regular schedule, either in recurring daily shifts or rotating shifts, including afternoon or night shifts.

Resources and Links

• Waste Award [MA000043]: A Fair Work Ombudsman document summarising who is and isn’t covered under the Australian Waste Management Award.
• Waste Management Award 2020: The full Fair Work Ombudsman document detailing all pay rates, conditions, and classifications under the Waste Management Award.
• Waste Management Award 2010: The original Waste Management Industry Award from the FWC in 2010, which was updated and renamed as the Waste Management Award 2020.
• Downloadable pay guide: Downloadable Waste Management Award pay guide from the Fair Work Ombudsman.

FAQs

Who is covered by the Waste Management Award?

The Waste Management Award covers employers operating fully or primarily in the waste management industry, and their employees who fall within the Award’s classifications. It also covers labour hire businesses and the employees they hire out to work in the waste management industry.

What is a waste management industry award?

The Waste Management Award is a modern national workplace award in Australia. It contains the minimum employment conditions for employers and employees in the waste management industry, including pay rates, hours of work, and leave entitlements. 

What is a Waste Award?

The Waste Award is officially known as the Waste Management Award. The original Waste Award (the Waste Management Award 2010) commenced operation in Australia on 1 January 2010, and was subsequently updated to become the Waste Management Award 2020 from 1 January 2020.

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.