Annualised salary arrangements are payment structures where employers pay staff a fixed annual salary that covers base wages plus penalty rates, overtime, and allowances. Instead of tracking every shift penalty or weekend loading separately, the employer bundles everything into one predictable salary figure. This approach simplifies payroll for roles with irregular hours while giving employees stable, consistent income.
However, these arrangements must meet strict Fair Work requirements to remain legal. Getting them wrong can result in underpayments, back-pay obligations, and significant penalties.
Even some of Australia’s biggest employers got annualised salaries wrong - and it cost them millions in backpay.





