Construction — Awards, Pay Rates & Compliance
The construction industry employs over 1.3 million Australians across residential, commercial, and civil. The Building and Construction General On-site Award (MA000020) sets pay rates by classification CW1-CW7, plus extensive allowances (tool, height, asbestos, leading hand, multi-storey, follow-the-job). Sub-trades have separate awards: the Electrical, Electronic and Communications Contracting Award covers electricians; the Plumbing and Fire Sprinklers Award covers plumbers. Sham contracting and underpayment are persistent compliance issues.
1.3M
Workers covered
15+
Building Award allowances
$109,200 under 15 staff / $546,000 at 15+
Sham contracting fine (max, company)
Awards covering construction
Modern Awards set the minimum pay rates, penalty rates, allowances, and entitlements for each industry. Click through for full details and the interactive calculator.
Common construction roles
Compliance focus areas
The 5 most common compliance issues in construction. Get these right and you avoid 90% of underpayment claims.
Allowances pile up fast
The Building Award has 15+ allowances on top of base rates: industry allowance, tool allowance, multi-storey allowance, leading hand, expense allowances. A CW3 carpenter on a high-rise can earn 20-30% above base in allowances.
Follow-the-job loading
Workers required to travel between sites receive a daily fares and travel allowance, plus mobilisation / demobilisation payments. Often missed in payroll.
Sham contracting
Many 'subcontractors' on site are actually employees in disguise. The Fair Work Act prohibits sham contracting — employers face up to $109,200 in fines per contravention for a company with fewer than 15 employees, or $546,000 for one with 15 or more plus back pay of full entitlements.
Apprentice rates
Apprentices have their own pay scale based on year of apprenticeship. Junior rates do NOT apply — apprentices receive specific apprentice rates regardless of age.
RDOs and accrued days
The Building Award's 36-hour week creates RDOs (rostered days off) accrued from the 4 extra hours each fortnight. Underpayment of RDO accrual on termination is common.
Calculators for construction
Free, instant calculators covering pay rates, penalty rates, casual loading, and eligibility checks for the construction industry.
Building Award Pay Rates (CW1-CW7)
Carpenter, bricklayer, labourer rates.
Electrical Award Pay Rates
A-grade electrician rates by level.
Plumbing Award Pay Rates
Plumber and plumbing apprentice rates.
Apprentice Wages Calculator
Year-by-year apprentice rate calculator.
Contractor or Employee?
Sham contracting test.
Shift Pay Calculator
Pay including penalty rates.
Construction enforcement decisions
Real Fair Work Commission, Federal Court, and FWO outcomes in this industry.
B.M.D. Constructions Pty Ltd v Construction, Forestry and Maritime Employees Union (No 4)
Construction, Forestry and Maritime Employees Union v GC Crane Hire Pty Ltd as Trustee for GA Caelli Discretionary Trust
Penalty $5,084
the Applicant v Beiler Constructions Pty Ltd as trustee for Fox Trading Trust
the Applicant v Karimbla Constructions Services (NSW) Pty Ltd
FairWork Mate for employers
Award coverage in construction is rarely one award.
Coverage turns on what the business does and what each person does inside it — which is how underpayments start. The advisor works out which award applies to each role, checks the rates and penalties against the current instrument, and cites the decisions behind it. 150 questions a month, cancel anytime.
Renews monthly at A$29.99 until you cancel. By continuing you agree to our Terms.
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