Annualised Salary Check Calculator
Check whether an annualised salary arrangement covers the minimum award entitlements, including overtime and penalty rates, over a year.
Your results
The annualised salary meets or exceeds the estimated award entitlement.
Calculation breakdown
- Award total
- Award entitlement = award base pay + penalty rates and overtime + allowances
- Comparison
- Shortfall/surplus = annualised salary paid − award entitlement
Worked example
An annualised salary of $85,000 compared to an award entitlement of $80,000 (base plus penalties and allowances) leaves the employee $5,000 better off, satisfying the annualised wage arrangement test.
Assumptions
- Award entitlement figures must be estimated separately from your award or payroll system.
- Represents a single reconciliation period, typically 12 months.
Sources
How this calculator works
Enter your annualised salary and an estimate of what you would have earned under the award, including base pay, penalty rates, overtime and allowances, to check whether the annualised salary leaves you better off, as required for many annualised wage arrangements.
Frequently asked questions
What is an annualised wage arrangement?
It is a set annual salary paid to cover various award entitlements such as overtime, penalties and allowances, provided the total is no less than the employee would otherwise receive.
How often must employers check this?
Many awards require an annual reconciliation to ensure the salary was not less than the award entitlements over the relevant period, plus a record-keeping obligation.
What happens if the award amount is higher?
If the award calculation exceeds the annualised salary paid, the employer is generally required to pay the shortfall to the employee.
Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.