A modern award is a legal document that sets the minimum pay and conditions for employees in a particular industry or occupation in Australia, on top of the National Employment Standards. Modern awards came into effect on 1 January 2010 and apply to employees in the national workplace relations system whose work the award covers.
If you employ anyone in Australia, an award almost certainly affects you. The Fair Work Ombudsman's list of awards runs to more than 120 separate awards, each with its own code starting MA, from general retail to hospitality, clerks and building. Working out which one applies is the first job in paying people correctly.
What a modern award sets
The Fair Work Ombudsman describes an award as outlining all the terms and conditions of employment for most employers and employees. In practice that usually means:
- Classifications and the minimum pay rate for each one
- Penalty rates for evenings, weekends and public holidays
- Overtime rates
- Allowances
- Rules for casual, part-time and full-time employment, such as casual loading and minimum shift lengths
- Hours of work, breaks and rostering rules
Awards sit on top of the National Employment Standards, the minimum entitlements every national system employee gets. Our guide to the National Employment Standards covers that base layer.
A real example: the General Retail Industry Award
To see what an award looks like in practice, here are a few terms from the General Retail Industry Award 2020, code MA000004, as of October 2026:
| Term | What the award says |
|---|---|
| Retail Employee Level 1 minimum rate | $1,056.80 a week, or $27.81 an hour |
| Casual loading | 25% on top of the minimum hourly rate |
| Minimum casual engagement | 3 hours, or 1.5 hours in limited cases |
| Sunday ordinary hours | 150% for full-time and part-time, 175% for casuals |
| Public holiday ordinary hours | 225% for full-time and part-time, 250% for casuals |
Every award follows a similar structure, so once you can read one, you can read the rest.
When an award doesn't apply
| Situation | What sets the minimum |
|---|---|
| Covered by an enterprise or other registered agreement | The agreement, but its base pay rates can't be lower than the award's |
| Manager or higher income employee | May not be covered by the award even if one applies to the industry |
| Award and agreement free | The National Minimum Wage plus the National Employment Standards |
The registered agreement point is the one employers get wrong. An agreement usually replaces the award's conditions, but if the agreement's base rates have fallen below the award's, the award base rates apply. That can happen quietly when an old agreement isn't updated and award rates keep rising each July.
Award wages and the National Minimum Wage
The National Minimum Wage is $26.44 an hour, or $1004.90 a week, as of 1 July 2026. It applies to employees who aren't covered by an award or registered agreement. Some awards contain introductory rates for new employees that are now below the National Minimum Wage. If an employee is covered by an award, the award's minimum applies instead, even in that case.
Each year the Fair Work Commission reviews both the National Minimum Wage and award pay rates in its annual wage review. Most changes start from the first full pay period on or after 1 July, so July is the month to recheck every award rate you pay.
How to find the award that covers your staff
- Start with your industry. Most awards are industry-based, so a shop, cafe or construction firm will usually find its award quickly.
- If the industry doesn't fit, look for an occupation award, such as one for clerical work, that follows the job rather than the business.
- Use the Fair Work Ombudsman's Find my award tool to confirm it.
- Find each employee's classification in the award, because that decides their base rate.
- Subscribe to email updates for your award so you hear about changes.
Common award mistakes small employers make
- Using the award for the business's industry when an employee's job is covered by an occupation award instead.
- Putting someone on the lowest classification and never moving them up as their duties grow.
- Paying an old enterprise agreement rate that has fallen below the current award base rate.
- Forgetting that a manager's exclusion from the award depends on the role and income, not the job title.
- Missing the July increase because payroll was set up once and never revisited.
Each of these is easy to fix once spotted, and a yearly check against the current award text catches most of them.
Transitional arrangements
When modern awards started, the then Australian Industrial Relations Commission allowed five years of transitional arrangements to phase in pay rates and some conditions. Most of those ended on 1 July 2014, but the Fair Work Commission has since added further transitional arrangements to some awards, including state-based differences. The Fair Work Ombudsman says every employer and employee is responsible for keeping up to date with their award and any changes.
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Awards also feed into other obligations, such as the superannuation guarantee you pay on top of wages.
My verdict
If you only do one thing, find your award and your employees' classifications this week. Almost every underpayment story starts with the wrong award or the wrong level. Then put 1 July in your calendar, because that's when the numbers move.
Awards are where weekend, evening and public holiday loadings come from, and our penalty rates guide covers how they work.
Frequently asked questions
What is a modern award?
A modern award is a document that sets the minimum terms and conditions of employment for an industry or occupation in Australia, on top of the National Employment Standards. Modern awards came into effect on 1 January 2010.
Who is covered by a modern award?
Employees in the national workplace relations system whose work falls under the award. Managers or higher income employees may not be covered even if an award applies to their industry.
What if no award covers my employee?
Award and agreement free employees are entitled to the National Minimum Wage and the National Employment Standards.
Does an enterprise agreement replace the award?
Usually, yes. But if the agreement's base rates of pay are lower than the award's, the award's base rates apply.
How many modern awards are there?
The Fair Work Ombudsman's list of awards runs to more than 120 awards, each with its own code starting MA.
When do award pay rates change?
After the Fair Work Commission's annual wage review. Most changes begin from the first full pay period on or after 1 July.
