How to Pay an Apprentice in Australia: Rates, Awards & Super
Hiring an apprentice is one of the best investments a trade business can make. Getting the payroll wrong is one of the fastest ways to end up in Fair Work trouble. This guide covers Award obligations, pay rates, allowances, super, and government subsidies. It also explains why manual calculation is a disaster waiting to happen.
What You Need to Know Before You Start
1. Which Modern Award Covers Your Apprentice?
The first thing to get right is which Award applies. This determines pay rates, allowances, and employment conditions. Get this wrong from the start and every pay run is wrong.
Building and Construction General On-site Award 2020
Covers carpentry, concreting, bricklaying, plastering, painting, and most general construction trades. One of the more complex Awards — over 30 employee classifications, plus industry allowance, tool allowance, fares and travel allowances, and leading hand rates. Apprentice classifications run from Year 1 through to Year 4. Rates are set as a percentage of the CW3 tradesperson rate.
Electrical, Electronic and Communications Contracting Award 2020
Covers electrical apprentices in electrical contracting. Key allowances include the industry allowance, tool allowance, and special allowances (heights, confined spaces, dirty work). Electrical apprentice rates are a percentage of the Electrical Tradesperson classification rate. Employment Hero/KeyPay fully supports this Award with pre-loaded apprentice classifications.
Plumbing and Fire Sprinklers Award 2020
Covers plumbing apprentices in plumbing contracting businesses. Similar allowance structure to the Electrical Award — industry allowance, tool allowance, and special allowances. Apprentice rates are a percentage of the Plumbing Tradesperson classification. Gas-fitting and roof plumbing may differ slightly. Check the full Award on the Fair Work website if you're unsure.
Not sure which Award covers your trade? The Fair Work Award Finder will tell you in about 90 seconds.
2. Apprentice Pay Rates: What You Need to Know
Apprentice wages under Modern Awards are a percentage of the relevant tradesperson rate — typically the CW3 (Construction Worker Level 3) or equivalent. The percentage increases each year of the apprenticeship.
| Year of Apprenticeship | Approx. % of Tradesperson Rate | Context |
|---|---|---|
| Year 1 | ~55% | Entry level; mostly on-the-job learning |
| Year 2 | ~65% | Growing capability, still supervised |
| Year 3 | ~75% | Significant trade competency |
| Year 4 | ~88–90% | Near-trade proficiency; final year |
Fair Work tip: Apprentice pay rates change every 1 July when the National Minimum Wage Order is updated. Any decent payroll software updates these rates automatically. If you're doing this in a spreadsheet, you're going to miss an update eventually. When you do, you'll owe back pay and potentially face a Fair Work penalty. This is not a hypothetical risk.
The percentages above are indicative and vary by Award. The Building and Construction Award, Electrical Award, and Plumbing Award each have their own rate tables. Always verify the current rates at fairwork.gov.au or use payroll software that updates them automatically.
3. Allowances You Must Pay
Base rates are just the start. Modern Awards for trade apprentices include mandatory allowances on top of base wages. These are not optional. The ATO and Fair Work both scrutinise them.
Tool Allowance
Payable where the employee must supply their own tools. The rate varies by Award — check your specific one. Typically a weekly dollar amount. Applies to apprentices once they're required to provide tools. Check your Award for the specific year this kicks in.
Industry Allowance
A flat-rate weekly allowance for the general conditions of working in construction or electrical/plumbing — outdoor work, construction sites, handling dirty materials. Rate varies by Award. Applies to apprentices from Year 1 in most trade Awards.
Fares and Travel Allowance
Many trade Awards include fares or travel allowances for employees who travel between jobs. The structure varies — some Awards pay per-kilometre, others pay a flat daily amount. Check your Award's travel provisions carefully. This is one of the most commonly missed allowances in manual payroll.
Meal Allowance
Payable when an employee works overtime beyond a specified trigger point and hasn't been given reasonable notice. Rate is set in the Award and increases periodically. Only applies when overtime meal break conditions are triggered, not on every shift.
Special Allowances (Electrical / Heights / Confined Spaces)
The Electrical Award includes specific allowances for heights, confined spaces, energised equipment, and dirty or hazardous conditions. These are per-hour or per-occasion rates that apply when the condition is present. Apprentices are entitled to them when the conditions apply to their work.
This is why manual payroll is risky for trade businesses. Missing a weekly tool allowance for 12 months is a meaningful underpayment. Multiply that across multiple employees and Awards, and the liability adds up fast.
4. Superannuation Obligations for Apprentices
There is no apprentice exemption from superannuation. The Superannuation Guarantee Contribution (SGC) applies to apprentice wages at the same rate as any other employee. Worth stating clearly because it surprises some employers.
The $450/month minimum earnings threshold was abolished from 1 July 2022. So super applies even if your apprentice only works part-time or earns a small amount in a given month. There is no carve-out for apprentices.
Super must be paid at least quarterly — due dates are 28 October, 28 January, 28 April, and 28 July. Late or missed payments attract the Superannuation Guarantee Charge (SGC charge). It includes interest and an admin fee, and it is not tax-deductible.
All decent payroll platforms calculate super automatically. Use a superannuation clearing house (most platforms include one) to batch your contributions across multiple super funds in a single payment.
5. Training Wage Subsidies That Reduce Your Effective Cost
Hiring an apprentice is not as expensive as it looks on paper. Federal and state government subsidies can cut the effective cost significantly. And most eligible employers don't claim everything they're entitled to.
Australian Apprenticeships Incentives Program (Federal)
The federal government provides employer incentives through the Australian Apprenticeships Incentives Program. The amount varies based on the occupation, the apprentice's characteristics (school leaver, mature age, Indigenous, disability), and employer size. Priority occupations — including electrical, plumbing, and construction trades — attract higher incentives. Total subsidies of $4,000–$8,000 over the apprenticeship term are common for eligible employers. Check australianapprenticeships.gov.au for current rates and eligibility.
State Government Incentives
Most states and territories offer additional incentives on top of the federal program. These vary by state. Some offer wage subsidies, some cover training costs, some target small businesses or regional employers. NSW, QLD, and VIC all have active programs. Check your state's training authority website for current offerings.
Trade-Specific Subsidies
Some trades have specific subsidy programs based on skills shortages. Electrical and plumbing have historically attracted strong incentives. Your Australian Apprenticeships Network Provider (AASN) — who you register through — should advise you on all available incentives. If they're not, ask them directly. It's their job to know.
Subsidy amounts change periodically. The figures in this guide are indicative. Always verify current rates with your AASN or at australianapprenticeships.gov.au.
Best Payroll Platforms for Managing Apprentice Pay
Here are the three platforms best suited to handling apprentice payroll in Australian trade businesses — specifically their capability around Award rate automation and allowance handling.
The standout choice for any business employing an apprentice on a trade Award. The Building and Construction, Electrical, and Plumbing Awards are pre-loaded with the full classification hierarchy — including apprentice years 1 through 4. All mandatory allowances are calculated and applied automatically. When rates update on 1 July each year, the platform updates automatically. You don't need to do anything.
For a business paying an electrical apprentice, Employment Hero handles the industry allowance, tool allowance, special allowances, and the correct apprentice year rate automatically. Set up the employee's Award classification once, and every pay run is correct. This is the platform we recommend for any trade business employing apprentices.
Try Employment Hero Free →If you're already on Xero for accounting, Xero Payroll is the natural starting point. It handles STP Phase 2, super processing, and standard payroll well. For apprentice payroll, it manages base rates and standard allowances. The Award interpretation is less automated than Employment Hero/KeyPay for complex scenarios though.
For a building or electrical business with one apprentice on a straightforward Award setup, Xero Payroll works well. If you have multiple apprentices across different trade classifications or complex allowance structures, consider Employment Hero/KeyPay instead.
Try Xero Free →For businesses where apprentice hours vary week to week — common in construction where weather and project phases affect hours — Deputy's time-tracking-to-payroll workflow is valuable. Award-compliant timesheets feed into payroll automatically. Overtime, penalty rates, and allowances triggered by actual hours are applied correctly without manual work.
Works best integrated with Employment Hero/KeyPay for payroll finalisation. Deputy handles time capture and Award interpretation at the rostering layer. Employment Hero handles the payroll run. Good combination for businesses with variable-hours apprentices.
Try Deputy Free →Your apprentice is your biggest HR compliance risk.
One Fair Work underpayment claim from a disgruntled ex-apprentice can cost $10,000+ in back pay, penalties, and legal fees. Employment Hero's Award automation costs $6/month. The maths here aren't complicated.
Try Employment Hero Free →Frequently Asked Questions
Under most trade Awards, apprentice wages are calculated as a percentage of the applicable tradesperson (CW3) rate, increasing each year of the apprenticeship: approximately 55% in Year 1, 65% in Year 2, 75% in Year 3, and 88–90% in Year 4. These percentages vary by Award — always check the specific Award covering your trade on the Fair Work website, as rates are updated on 1 July each year following the National Minimum Wage Order.
Yes. Superannuation Guarantee Contributions (SGC) apply to apprentice wages at the same rate as any other employee — 11.5% in 2024–25, increasing to 12% from 1 July 2025. The $450/month minimum earnings threshold was abolished from 1 July 2022, so super applies even if you pay the apprentice a small amount in any given month. There is no apprentice exemption from the SGC. Super must be paid at least quarterly, and late payments attract the Superannuation Guarantee Charge.
Yes. The Australian Apprenticeships Incentives Program provides employer incentives — the amount varies by trade, apprentice characteristics, and employer type. Priority occupations including electrical, plumbing, and construction trades typically attract higher incentives. State governments also offer additional incentives on top of the federal program. Total subsidies of $4,000–$8,000 over the apprenticeship term are common for eligible employers in trade industries. Check australianapprenticeships.gov.au for current rates and eligibility criteria.
Electrical apprentices are covered by the Electrical, Electronic and Communications Contracting Award 2020 (commonly called the Electrical Award). This Award sets the apprentice pay rates by year, allowances (including the industry allowance, tool allowance, and special allowances for heights, confined spaces, and hazardous conditions), and employment conditions for electrical apprentices working in contracting businesses. Employment Hero/KeyPay has this Award pre-loaded and will calculate the correct pay for each year of apprenticeship automatically, including all mandatory allowances.