Isabelle TorresThe Clerks — Private Sector Award 2020 (MA000002) is one of the most widely applied Modern Awards in Australia, providing minimum pay rates and conditions for clerical and administrative employees across the private sector. Whether you work as a receptionist, data entry officer, payroll clerk, administrative assistant, or office coordinator, this Award sets the baseline for your wages, overtime, leave entitlements, and redundancy pay. Understanding it is essential for both employees protecting their rights and employers meeting their legal obligations.
What Is the Clerks — Private Sector Award 2020?
The Clerks — Private Sector Award 2020 was made by the Fair Work Commission (FWC) under the Fair Work Act 2009 (Cth) and took effect on 1 January 2020, replacing the Clerks — Private Sector Award 2010. It operates as a federal instrument, meaning the same minimum conditions apply to covered employees across all Australian states and territories.
The Award applies to employees in administrative, clerical, and related occupations in the private sector who are not already covered by a more specific award. This includes workers in roles such as accounts clerks, bookkeepers, call centre agents, customer service representatives, filing clerks, payroll officers, receptionists, and typists. Crucially, it does not cover employees primarily covered by sector-specific awards — for example, the Legal Services Award, Real Estate Industry Award, or Banking, Finance and Insurance Industry Award.
Pay rates under the Award are reviewed annually by the Fair Work Commission through the Annual Wage Review. The most recent increase, effective from the first pay period on or after 1 July 2025, was 3.5%, bringing the entry-level (Level 1, Year 1) rate to AUD $25.74 per hour.
Pay Structure and Classification Levels
The Award classifies employees into five main levels, with sub-years at the junior levels and specialist call-centre classifications:
| Classification | Hourly Rate (AUD) | Weekly Rate (38 hrs, AUD) |
|---|---|---|
| Level 1 — Year 1 | $25.74 | $978.20 |
| Level 1 — Year 2 | $26.96 | $1,024.40 |
| Level 1 — Year 3 | $27.79 | $1,056.00 |
| Level 2 — Year 1 | $28.12 | $1,068.40 |
| Level 2 — Year 2 | $28.64 | $1,088.20 |
| Level 3 | $29.70 | $1,128.50 |
| Call Centre — Principal Customer Contact Specialist | $29.91 | $1,136.40 |
| Level 4 | $31.19 | $1,185.10 |
| Level 5 | $32.45 | $1,233.20 |
| Call Centre — Technical Associate | $35.55 | $1,350.90 |
Rates apply from the first pay period on or after 1 July 2025 (3.5% Annual Wage Review increase). All figures in AUD.
Level 1 covers entry-level clerical roles involving routine tasks performed under close supervision — data entry, filing, mail handling, and reception duties at the most basic level. Progression through Year 1 to Year 3 typically reflects 12 months of satisfactory service at each step.
Level 2 covers employees who carry out more varied clerical tasks with moderate independence. This includes staff who process transactions, respond to customer inquiries, or assist with accounts.
Level 3 covers employees performing higher-level tasks such as payroll processing, record management, accounts payable/receivable, and those who provide limited supervision to others.
Level 4 covers senior administrative roles, team leaders, and employees with broad accountability for office operations.
Level 5 covers senior positions with significant responsibility, including those managing teams or undertaking specialised technical administrative work.
Casual Loading
Casual employees are not entitled to paid leave under the National Employment Standards (NES) but instead receive a 25% casual loading on top of their base hourly rate. A Level 1 Year 1 casual earns AUD $32.18 per hour (AUD $25.74 × 1.25). This compensates for the absence of paid leave and job security provisions.
Junior Rates
Employees under 21 years of age may be paid a percentage of the adult rate based on their age, typically ranging from 45% at age 15 to 90% at age 20. At age 21, employees move to the full adult rate.
Working Hours, Overtime, and Penalty Rates
The ordinary hours of work for full-time employees under the Clerks Award are 38 hours per week, typically spread over five days from Monday to Friday, though the Award permits averaging over a 4-week cycle.
Overtime
Where employees work beyond their ordinary hours, the Award provides for overtime penalty rates:
- First 2 hours of overtime — 150% of the ordinary hourly rate
- Overtime beyond 2 hours — 200% of the ordinary hourly rate
Employees who work overtime on a Sunday or public holiday receive the respective penalty rates for those days (see below), which are generally higher.
Penalty Rates for Unsociable Hours
| Time of Work | Penalty Rate |
|---|---|
| Saturday (before 12:30 pm) | 125% of ordinary rate |
| Saturday (from 12:30 pm) | 150% of ordinary rate |
| Sunday | 200% of ordinary rate |
| Public holidays | 250% of ordinary rate |
For example, a Level 3 employee (AUD $29.70/hour) working a Sunday shift earns AUD $59.40 per hour. The same employee on a public holiday earns AUD $74.25 per hour.
Shift Work
The Award also contains provisions for shift workers — employees who rotate across morning, afternoon, and night shifts. Shift penalties apply for afternoon and night shifts and vary based on start times and shift type.
Annual Leave Entitlements
Under the National Employment Standards (NES, Fair Work Act 2009 s.87), all full-time employees covered by the Clerks Award are entitled to 4 weeks (20 days) of paid annual leave for each year of service. Part-time employees accrue leave on a pro-rata basis proportional to their contracted hours.
Annual leave accrues continuously throughout the year. An employee working 38 hours per week accrues approximately 1.538 hours of annual leave per week (20 days × 7.6 hours ÷ 52 weeks).
Annual Leave Loading
A key entitlement under the Clerks Award is the annual leave loading of 17.5% of the ordinary time rate. This additional amount is payable when the employee takes their annual leave. It is designed to compensate for lost penalty rate income during leave periods.
For example, a Level 2 Year 1 employee (AUD $28.12/hour) taking two weeks of annual leave receives:
- Base pay: AUD $28.12 × 76 hours = AUD $2,137.12
- Leave loading: 17.5% × AUD $2,137.12 = AUD $373.99
- Total annual leave payment: AUD $2,511.11
Cashing Out Annual Leave
Under the Award and the NES, employees may cash out accrued annual leave by written agreement, provided they retain at least 4 weeks of accrued leave after the cash-out and the arrangement is genuinely agreed upon (Fair Work Act 2009 s.93).
Notice Period Entitlements
When employment ends, both employers and employees must provide minimum notice under the NES (Fair Work Act 2009 s.117). The Clerks Award does not provide notice periods beyond the statutory NES minimums.
NES Minimum Notice — Employer Dismissing an Employee
| Period of continuous service | Minimum notice |
|---|---|
| Less than 1 year | 1 week |
| 1 to less than 3 years | 2 weeks |
| 3 to less than 5 years | 3 weeks |
| 5 years or more | 4 weeks |
| Over 45 years of age with 2 or more years of service | +1 week supplement |
The over-45 supplement applies in addition to the standard notice — so a 46-year-old with 3 years of service is entitled to 4 weeks' notice (3 + 1 supplement).
Payment in Lieu of Notice
Where an employer elects not to require an employee to work their notice period, they must pay the equivalent amount in lieu of notice — calculated on the employee's full rate of pay including any regular allowances (Fair Work Act 2009 s.117(2)).
Employee Resignation
An employee who resigns is generally required to give the same minimum notice as outlined above. The Award does not specify longer employee notice obligations, though individual employment contracts may do so.
Redundancy Pay
When a position is genuinely made redundant, employees who have worked for more than one year are entitled to redundancy pay under the NES (Fair Work Act 2009 s.119, Schedule 4). The Clerks Award does not provide any redundancy entitlement above the NES statutory minimum.
NES Genuine Redundancy Scale
| Years of continuous service | Weeks of redundancy pay |
|---|---|
| 1 year | 4 weeks |
| 2 years | 6 weeks |
| 3 years | 7 weeks |
| 4 years | 8 weeks |
| 5 years | 10 weeks |
| 6 years | 11 weeks |
| 7 years | 13 weeks |
| 8 years | 14 weeks |
| 9 years | 16 weeks |
| 10+ years | 12 weeks (capped) |
Note: The cap at 10+ years reflects the Fair Work Act 2009 Sch 4 maximum.
Redundancy pay is calculated on the employee's base rate of pay (not including penalty rates, allowances or overtime). A Level 4 employee (AUD $31.19/hour × 38 hours = AUD $1,185.22/week) made redundant after 5 years would receive AUD $11,852.20 (10 weeks).
Small Business Employer Exemption
Small business employers (those employing fewer than 15 employees) are exempt from NES redundancy pay obligations (Fair Work Act 2009 s.121). However, small business employees are still entitled to minimum notice periods.
Tax Treatment
Genuine redundancy payments are treated favourably for tax purposes. The tax-free component is AUD $12,524 plus AUD $6,264 for each completed year of service (2025-26 rates). Amounts above the tax-free threshold are taxed as an Employment Termination Payment (ETP) at concessional rates.
Superannuation
Employers covered by the Clerks Award must pay superannuation at the Superannuation Guarantee (SG) rate of 12.0% on ordinary time earnings, effective 1 July 2025 under the Superannuation Guarantee (Administration) Act 1992.
SG contributions are in addition to the employee's take-home pay — they do not reduce gross wages. Contributions are paid into the employee's chosen super fund (or the employer's default fund) at least quarterly, and typically more frequently under modern payroll systems.
Fund Choice
Under the Fair Work Act 2009 s.149A, most employees have the right to choose their own complying superannuation fund. Where an employee nominates a complying fund, the employer must pay contributions into that fund. The Award does not prescribe a specific default super fund, but many clerical employers use industry funds such as HESTA, Hostplus, or REST.
Concessional Contributions Cap
Concessional (pre-tax) contributions — including employer SG payments — are capped at AUD $30,000 per year for the 2025-26 financial year. Exceeding this cap results in additional tax liability for the employee.
Workplace Allowances
The Clerks Award 2020 prescribes a range of allowances payable to employees in specific circumstances:
| Allowance | Amount (AUD) |
|---|---|
| Meal allowance (overtime or split shift) | $19.93 per occasion |
| Vehicle allowance | $0.98 per kilometre |
| Laundry/clothing allowance | $3.55 per week |
| First-aid allowance | $16.03 per week |
These allowances are indexed and updated annually alongside wage rates.
State and Territory Variations
The Clerks Award 2020 is a federal instrument, meaning its pay rates and conditions apply uniformly across all Australian states and territories. However, certain employee entitlements are governed by state and territory law rather than the federal award:
Long Service Leave
Long service leave entitlements vary significantly by jurisdiction:
| State/Territory | Qualifying Period | Entitlement | Legislation |
|---|---|---|---|
| NSW | 10 years | 2 months (~8.667 weeks) | Long Service Leave Act 1955 |
| VIC | 7 years | 6.067 weeks (pro-rata from 7 years) | Long Service Leave Act 2018 |
| QLD | 10 years | 8.667 weeks | Industrial Relations Act 2016 |
| SA | 10 years | 13 weeks | Long Service Leave Act 1987 |
| WA | 10 years | 8.667 weeks | Long Service Leave Act 1958 |
| TAS | 10 years | 8.667 weeks | Long Service Leave Act 1976 |
| ACT | 7 years | 6.067 weeks (pro-rata from 7 years) | Long Service Leave Act 1976 |
| NT | 10 years | 13 weeks (+ 6.5 weeks per additional 5 years) | Long Service Leave Act 1981 |
Use the Long Service Leave tab in the calculator above to estimate your entitlement by state or territory.
Public Holidays
All employees are entitled to federal public holidays (New Year's Day, Australia Day, Good Friday, Easter Monday, ANZAC Day, King's Birthday, Christmas Day, Boxing Day). State-specific additions include Melbourne Cup Day (VIC), EKKA Show Day (QLD), Adelaide Cup (SA), Foundation Day (WA), and Eight Hours Day (TAS).
Workers' Compensation
Workers' compensation is administered by state and territory schemes: icare (NSW), WorkSafe Victoria (VIC), WorkCover Queensland (QLD), ReturnToWork SA (SA), WorkCover WA, WorkSafe Tasmania, ACT WorkSafe, and NT WorkSafe. Contribution rates and benefits differ by jurisdiction.
Your Rights at Work
Unfair Dismissal
If you are dismissed from employment without a fair reason or without a fair process, you may be eligible to apply to the Fair Work Commission for an unfair dismissal remedy (Fair Work Act 2009 s.382). The qualifying period is:
- 6 months of continuous employment for employees of regular employers
- 12 months for employees of small business employers (fewer than 15 employees)
Applications must be lodged within 21 days of the dismissal taking effect.
General Protections
The Fair Work Act 2009 Part 3-1 protects employees from adverse action by their employer because they exercised a workplace right, engaged in industrial activity, or hold a protected attribute. These protections apply from the first day of employment, with no qualifying period.
Right of Entry — Unions
Union officials with an entry permit may enter a workplace to hold discussions with union members or investigate suspected contraventions of the Fair Work Act or the Clerks Award (Fair Work Act 2009 ss.481-499). Employees have the right to speak with union representatives at work.
Workplace Health and Safety
All employees are protected by the Work Health and Safety Act 2011 (Cth) (or equivalent state legislation), which requires employers to provide a safe work environment, safe work systems, and adequate training and supervision.
This article is for general information purposes only and does not constitute legal advice. For questions about your specific employment situation, contact your union, the Fair Work Ombudsman (1300 724 690), or a qualified employment lawyer. The Fair Work Commission publishes the authoritative version of the Clerks — Private Sector Award 2020 at fwc.gov.au.
