Paying wages

Criminal underpayment laws start 1 January 2025

From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. The Voluntary Small Business Wage Compliance Code is now available to help businesses prepare and protect themselves.

Learn more at Criminal prosecution.

Learn about the minimum obligations for paying employees in Australia including how and when to pay wages.

On this page:

What time needs to be paid

Employees need to be paid for all time spent working. This includes:

  • time spent in meetings
  • doing training (including online or at home)
  • time spent opening or closing a store.

If an employer requires an employee to be present at work, they must be paid for that time.

Example: Employee required to be at work early 

Joe is an electrician that works for a business that does home visits to carry out small repairs and inspections.

Joe is required to come to the office 15 minutes early to get the work plan and load the van with the equipment needed for each job.

Joe’s employer, Tom, has been paying him from the time he arrives at the first home visit.

As Tom requires Joe to be in the office before the home visits start, Joe must be paid from the time he gets to the office, not from the time he arrives at his first home visit.

When and how to pay wages

Employers need to pay employees at least monthly for the work they do. Employees can be paid:

  • in cash
  • by cheque
  • directly into their bank account by electronic funds transfer (EFT).

Find out more on our Frequency of pay page.

Tip

Use the Voluntary Small Business Wage Compliance Code and supporting guide to make sure employees are being paid correctly. Our guide offers practical advice and tools including a handy checklist, case studies and best practice tips.

Pay slips and record-keeping

Employers need to follow certain rules about giving employees pay slips and keeping pay records.

Pay slips

Employees need to be given a pay slip within 1 working day of being paid. Pay slips can be given electronically or in hard copy. Pay slips need to include certain details about an employee’s pay. Penalties apply for providing false or misleading information on a pay slip.

Find out more on our Pay slips page.

Record-keeping

Employers have to keep accurate and up-to-date records about their employees. This includes information about an employee’s pay, leave and hours of work. Records also need to be kept about any changes to working arrangements or ending employment.

Find out more on our Record-keeping page.

Payment summaries

Payment summaries, also known as income statements, need to include payroll information required by the Australian Tax Office (ATO). Most businesses are covered by Single Touch Payroll, which impacts the way employers need to report payroll, tax and superannuation information to the ATO.

Find out more on our Payment summaries page, or visit Tax and superannuation for information about paying super.

For information about tax, including PAYG withholding, visit the Australian Taxation Office.

Tools and resources

Related information