Private sector employers and employees
Telephone: 1300 655 266
Mailing address
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East Perth WA 6892
Minimum entitlements for employees paid by commission or piece rates
This information is only relevant to employers and employees in the WA state industrial relations system.
This page provides information about minimum employment entitlements for employees who are paid by commission or percentage reward, or by piece rates.
Minimum entitlements for commission-only and piece rate employees
Commission-only and piece rate employees are entitled to minimum conditions under the Minimum Conditions of Employment Act including:
- the minimum wage;
- annual leave, personal leave, bereavement leave, parental leave and family and domestic violence leave; and
- provisions relating to public holidays, reasonable hours of work, authorised deductions from pay, and unreasonable requirements to spend or pay money to an employer.
Commission-only and piece rate workers may be covered by a WA award. If an employee is covered by a WA award, the entitlements outlined in the WA award must be provided to the employee, and it is unlawful to provide pay rates or leave conditions below the WA award provisions.
If you are unsure if a WA award applies to you or your business, visit the WA awards for common jobs page or contact Wageline on 1300 655 266 to assist in determining likely WA award coverage.
Visit the Minimum pay rates for award free employees page or view Wageline’s Award free minimum pay rates and entitlements summary for current minimum rates of pay and an overview of key employment entitlements for award free employees.
Long service leave for employees paid by commission or piece rates
For information about long service leave for employees paid by commission or piece rates, visit the Long service leave page.
Calculating payment for leave for employees paid wholly by commission or piece rate
Full time and part time employees are entitled to paid leave entitlements including annual leave, personal leave, bereavement leave, parental leave and family and domestic violence leave.
Employees paid wholly by commission, percentage reward or piece rates are to be paid the highest of the following for a period of paid leave:
- a rate payable under a WA award or contract of employment for a period of leave;
- a rate calculated according to the employee’s average weekly earnings over a period totalling 365 days immediately before the time the leave is taken;
- the applicable minimum rate of pay.
Where the rate of payment for a period of paid leave is being calculated according to the employee’s average weekly earnings over the 365 days before the leave is taken, the following periods are not included in the calculation:
- any period during which the employee was on unpaid leave; and
- any period during which the employee was stood down in accordance with an award, agreement or legislative provision.
This ensures that employees are not disadvantaged if, for example, they have taken a period of unpaid leave, such as unpaid parental leave.
Calculating payment for public holidays for employees paid wholly by commission or piece rate
Full time and part time employees who are not required to work on a day solely because that day is a public holiday are entitled to be paid for the day. Part time employees receive public holidays if the day falls on a day they would normally work.
Full time and part time employees paid wholly by commission, percentage reward or piece rates are to be paid the highest of the following for a public holiday:
- a rate payable under a WA award or contract of employment for a period of leave;
- a rate calculated according to the employee’s average weekly earnings over a period totalling 365 days immediately before the day of the public holiday; or
- the applicable minimum rate of pay.
Where the rate of payment for a public holiday is being calculated according to the employee’s average weekly earnings over the 365 days before the day of the public holiday, the following periods are not included in the calculation:
- any period during which the employee was on unpaid leave; and
- any period during which the employee was stood down in accordance with an award, agreement or legislative provision.
This ensures that employees are not disadvantaged if, for example, they have taken a period of unpaid leave, such as unpaid parental leave.
Exclusion of commission-only and piece rate-only employees from minimum employment conditions before 20 June 2022
New state employment laws commenced on 20 June 2022.
Previously, employees in the state industrial relations system who were paid wholly by commission or percentage reward, or wholly by piece rates were excluded from the definition of ‘employee’ in the Minimum Conditions of Employment Act.
This exclusion meant that commission-only and piece rate-only employees who were not covered by a WA award were not entitled to the state minimum wage and other minimum conditions of employment provided in the Minimum Conditions of Employment Act prior to 20 June 2022.
Commission-only and piece rate-only employees covered by a WA award were entitled to the minimum conditions under the Minimum Conditions of Employment Act before the changes to state employment laws on 20 June 2022.
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