Penalties, allowances and loadings

In many awards and agreements, there are certain things you may be entitled to in addition to your rate of pay. Here are examples of some of the more usual ones:

 

Penalties

 

A higher rate of pay that compensates you for work done outside usual working hours, such as late at night or on public holidays. 

 

An example is the Saturday and Sunday penalty rates paid to shop employees working their normal hours on these days.

 

Allowances

 

These are additional payments made to you if undertake certain tasks such as using your own tools or performing your work under adverse conditions. 

 

Types of allowances include disability allowance, height allowance, dirt or danger money, qualification and supervisory allowances. 

 

Other common allowances are:

 

Meal allowance

 

A payment if you work overtime which compensates you for the cost of a meal. 

 

The amount of the allowance, and when it must be paid, is clearly set out in your award.

 

Shift allowance

 

A payment made for working a shift. This money compensates you for working during non-standard (daytime) hours (eg a shift in the afternoon, at night or in the early morning).

 

 

Loadings

 

Any payments that are made to you, over and above your normal award rate, to compensate you for some particular aspect of your job (eg weekend work) or for some aspect of your employment (eg remote geographic location).

 

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