Packages
A remuneration package is the wage or salary plus any additional benefits, such as accommodation, a vehicle, phone, utilities, meals or milk. A well-structured package supports attracting, retaining and motivating the right employees.
A good package reflects the business's circumstances, the responsibilities of the role, the employee's skills, and current market rates for similar positions.
Pay
Pay is usually described as wages or salary. Wages are based on time worked (hourly, daily or weekly). A salary is a fixed amount not tied to hours worked. For classifications, hours, pay types and rates, see the Pay Rates section.Bonuses and incentives
Bonuses reward employees for meeting specific targets, such as increased milk production, annual profit, or reduced mastitis. They cannot replace award pay, but can be included as part of a workplace agreement.Gratuities
A gratuity is an unconditional payment, often made on retirement, recognising service in addition to legal entitlements. Document any gratuity clearly to avoid confusion with mandatory payments.Contract milkers
Contract milkers are often paid 'per milking' and treated as contractors, but in most cases they are legally casual employees. They are usually entitled to award or state (WA) minimum wages, and the employer must also meet workers compensation and superannuation obligations. See the Contractors section.Share farmers
Entitlements for share farmers depend on the terms of the particular arrangement — see the Share farming section. Workers compensation laws vary between states and territories, so share farmers should check with their insurer.Other benefits
Benefits such as accommodation, a car, utilities, meals or milk can form part of a total package. They cannot replace minimum award, state (WA) or federal pay, but can count as over-award payments. They can also offset minimum award entitlements in a workplace agreement, provided a clear monetary value is assigned and the employee is not financially worse off than under the award.
For providing housing as part of a package, see the Accommodation section.
Superannuation
Superannuation is generally not counted as part of a package, because employers must pay it for all employees (with limited exceptions). Some employers contribute above the minimum to attract people, in which case the extra can be presented as part of the overall package.Building a package to attract the right person
Once the minimum legal pay and any benefits are known, they can be combined into a package. For full-time employees, it can be simpler to offer a flat rate that includes overtime and penalty rates. Because this varies the award, it must be agreed through an Individual Flexibility Agreement (IFA) or an enterprise agreement, and must pass the Better Off Overall Test (BOOT). See the Awards section for more on IFAs.Consider other benefits
Market rates are often higher than the minimum wage, so match the market to attract the right people, then add benefits to show the package's full value. For example (illustrative only — check current rates with the Fair Work Pay Calculator), a wage of about A$25 an hour for a 45-hour week is roughly A$59,000 a year; adding accommodation worth about A$10,400, plus meat, milk and no travel costs, can lift the total value to around A$70,000.Common questions
What goes into a dairy farm pay package?
A package is the wage or salary plus any benefits such as accommodation, a vehicle, utilities, meals or milk. Benefits can add value but cannot replace minimum award, state or federal pay.
Can benefits replace award wages?
No. Benefits cannot replace minimum pay. They can count as over-award payments, or offset award entitlements within a workplace agreement if a clear monetary value is assigned and the employee is not worse off overall.
Is superannuation part of the package?
Generally no, because employers must pay it for all employees. If an employer contributes above the minimum rate, the extra can be presented as part of the overall package.
Can I pay a flat rate that includes overtime?
Yes, for full-time employees, but only through an Individual Flexibility Agreement or enterprise agreement that passes the Better Off Overall Test, so the employee is better off than under the award.