Heads up, there’s been a change to the definitions and minimum pay rates for entry level classifications that came into effect as of 1st January 2025. What does this all mean and who does it affect? Let’s have a look.
Introductory classifications
Some modern awards currently include pay rates that are lower than the National Minimum Wage. These rates typically apply to entry-level roles, often referred to as "introductory classifications." These classifications are usually listed as ‘C14’, ‘Level 1’, or simply ‘introductory’ within the awards and are designed to be temporary and only apply during the early stages of employment.
The changes that have been made are designed specifically to limit the use of introductory classifications in affected awards.
These introductory classifications are meant to cover the starting phase of a job, so usually allow for such things as orientation or induction, completing necessary training or building foundational skills and experience for the role. Once employees move beyond this initial stage, they must receive at least the National Minimum Wage for their classification.
Time limit
The key point to note is that a time limit now applies to these introductory rates. The time limit for introductory classifications will vary depending on the specific award but will not exceed six months.
In some cases, employees may advance to the next classification level earlier. Progression could occur if they meet certain criteria, such as gaining the required qualifications or demonstrating competency in their role. Typically, advancement happens as soon as one of these conditions is met.
Minimum pay rates
It’s important to note that if you have employees who have been on the introductory rate for longer than the maximum allowed period under their award, their pay rate will need to be increased to the next level. This adjustment must take effect from the first full pay period starting on or after either 1 January 2025 or 1 April 2025, depending on when the changes apply to their specific award (see below).
Also note that there are several awards that have had changes to their minimum pay rates.
The awards with rule changes
The following awards have new rules that apply to introductory classifications as of 1st January 2025:
- Airline Ground Staff Award
- Amusement Award
- Animal and Veterinary Services Award
- Australian Government Award
- Dry Cleaning and Laundry Award
- Fitness Award
- Food and Beverage Manufacturing Award
- Funeral Award
- Graphic Arts and Printing Award
- Joinery Award
- Live Performance Award
- Manufacturing Award
- Marine Tourism and Charter Vessels Award
- Meat Award
- Pest Control Award
- Port Authorities Award
- Textile, Clothing, Footwear and Associated Industries Award
- Timber Award
- Travelling Shows Award
- Vehicle Award
The Horticulture Award also has changes to introductory rates, but these won’t come into effect until 1st April 2025.
The awards with rule and minimum pay rate changes
The following awards have new rules that apply to introductory classifications as well as minimum pay rates for some levels as of 1st January 2025:
- Air Pilots Award
- Aquaculture Industry Award
- Architects Award
- Business Equipment Award
- Cement, Lim and Quarrying Award
- Children’s Services Award
- Concrete Products Award
- Cotton Ginning Award
- Electrical, Electronic and Communications Contracting Award
- Rail Industry Award
- Seafood Processing Award
- Seagoing Industry Award
- Sugar Industry Award
- Wine Industry Award
- Wool Storage, Sampling and Testing Award
The Pastoral Award will see changes occur from 1st April 2025.
You can access all Awards for further details here.
If you are unsure as to whether or not you need to apply any of these changes, please reach out to the team at HR Staff n’ Stuff for guidance. We are always here to help!
