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Ordinary pay

The definition of 'ordinary pay' for the purposes of portable long service.

What is ordinary pay?

Ordinary pay is the gross wages or salary, prior to deductions such as PAYG tax, salary sacrifice and salary packaging items, paid or payable to the worker for work under an award or agreement (including a common law contract).

If a worker ordinarily works weekends, or shift work, and gets penalty rates then those penalty rates will form part of the worker’s ordinary pay.

Examples of what ordinary pay includes

    • any above/over award payments
    • public holiday penalty rates
    • weekend and shift work penalty rates, where the worker ordinarily works weekends or shift work 
    • overtime – at the regular rate of pay
    • sick leave
    • annual leave
    • worker's compensation – when payment is made by the employer in the first instance and then reimbursed by the insurance company
    • maternity/paternity leave paid by the employer and when payment is made by the employer in the first instance and then reimbursed by the government
    • bereavement leave
    • carer’s leave
    • other paid leave
    • casual loading
    • jury duty
    • long service leave
    • allowances, paid or payable, including – 
      • shift allowances
      • on-call allowance
      • leading hand allowance
      • first aid allowance
      • broken shift allowance
      • toilet allowance 
      • refuse collection allowance 
    • any above/over award payments
    • public holiday penalty rates
    • weekend and shift work penalty rates, where the worker ordinarily works weekends or shift work 
    • overtime – at the regular rate of pay
    • sick leave
    • annual leave
    • worker’s compensation – when payment is made by the employer in the first instance and then reimbursed by the insurance company
    • maternity/paternity leave paid by the employer and when payment is made by the employer in the first instance and then reimbursed by the government
    • bereavement leave
    • carer’s leave
    • other paid leave
    • casual loading
    • jury duty
    • long service leave

Examples of What Ordinary Pay Does Not Include

    • leave without pay (hours must be included)
    • overtime penalty rates
    • leave loading
    • expense reimbursements 
    • amounts paid to the worker for use of the following - 
      • materials
      • equipment
      • motor vehicle
    • allowances, including – 
      • shift
      • travel
      • meals
      • protective clothing
      • sleepover 
    • termination payments, including – 
      • in lieu of notice
      • lump-sum payment in lieu of accrued leave
      • redundancy
    • superannuation contributions made by the worker’s employer
    • cashed out leave
    • Christmas bonuses
    • one-off bonuses (e.g. performance pay)
    • maternity/paternity leave where payments are made directly by the government
    • worker’s compensation where payments are made directly by the insurance company
    • leave without pay (hours must be included)
    • overtime penalty rates
    • leave loading
    • expense reimbursements
    • amounts paid to the worker for use of the following -  
      • materials
      • equipment
      • motor vehicle
    • allowances for – 
      • travel
      • meals
      • protective clothing
    • termination payments, including – 
      • in lieu of notice
      • lump-sum payment in lieu of accrued leave
      • redundancy
    • superannuation contributions made by the worker’s employer
    • cashed out leave
    • Christmas bonuses
    • one-off bonuses (e.g. performance pay)
    • maternity/paternity leave where payments are made directly by the government
    • worker’s compensation where payments are made directly by the insurance company

Reviewed 30 March 2021

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