What is the base rate of pay?
The base rate of pay is the minimum hourly or weekly rate under an employee's award or agreement, excluding penalties, loadings, allowances, and overtime.
The base rate of pay is the rate payable to an employee for their ordinary hours of work, excluding incentive-based payments, bonuses, loadings, monetary allowances, overtime, and penalty rates. It is defined in section 16 of the Fair Work Act 2009 and is used as the starting point for calculating penalty rates, leave payments, and other entitlements.
For award-covered employees, the base rate is the minimum rate for their classification level. For award-free employees, it is the rate set in their contract for ordinary hours. Annual leave and other NES leave must be paid at no less than the base rate of pay.
Key facts
- •Defined in section 16 of the Fair Work Act 2009
- •Excludes penalties, loadings, overtime, bonuses, and allowances
- •Used as the minimum for annual leave payments under the NES
- •For award employees, it is the minimum rate for their classification level
- •The national minimum wage base rate is $24.95 per hour (from 1 July 2025)
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Pay CalculatorFrequently asked questions
Is the base rate the same as the hourly rate on my payslip?
Not necessarily. Your payslip hourly rate might include loadings (like casual loading) or be an annualised rate. The base rate is the rate before any loadings, penalties, or allowances are added.
Are penalty rates calculated on the base rate?
Yes. Penalty rates under awards are expressed as percentages of the base rate — for example, 200% on Sundays means double the base rate per hour.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.