How to work out if you're being paid correctly (and where to find help)

Are you being paid correctly? Here’s how to check, and what to do if you find an error.

A growing number of working Australians are missing out on their rightful payments. This is known as ‘wage theft’. The Australian Fair Work Ombudsman’s (FWO) 2021-2022 annual report revealed it had recovered more than $532 million for 384,805 short-changed workers — a record sum for a record number of employees. In fact, the report states that the result is “three times higher than the previous record recoveries in 2020-21, and more than quadruple that achieved in 2019-20”.

This may have you questioning if your employer has paid you fairly. So, there’s no better time than now to check if your pay is correct.

Should I get a payslip and how often?

In Australia, it is a legal requirement for employers to provide a payslip to each of their employees. Additionally, the FWO states that payslips should be given to you within one working day from the day you are paid, even if you are on leave. Your payslips can be either digital or physical but the information on both should be the same.

If you’re concerned about not receiving a payslip or getting delayed payslips, you can contact the FWO for support on what to do or if you want to report your employer.

What should be on my payslip?

According to the FWO, some of the main things that should be on your payslip include:

• your name
• your employer’s name
• your employer’s Australian Business Number (ABN)
• the dates of the pay period
• the date of payment
• your gross and net pay
• if you’re paid hourly: your ordinary hourly pay rate, number of hours worked at that rate and the total dollar amount of pay at that rate
• any loadings (including casual loading), allowances, bonuses, penalty rates, incentive-based payments or other paid entitlements
• the pay rate that applied on the last day of employment
• any deductions from your pay, including the amount and details of each deduction, as well as the details of the fund or account the deduction was paid into
• superannuation contributions paid for your benefit, including the amount made during the pay period or the amount that needs to be made and the details of the super fund the contributions were made to or will be made to.

What does a payslip look like?

The FWO provides this example payslip, which it suggests employees could use to compare against their payslip:

Where can I find out how much I should be paid?

Okay, so now you know how to read your payslip, but how do you know if you’re actually on the right pay rate? A great place to start could be to check your base pay rate, allowances and penalty rates – including rates for overtime hours – with the FWO’s pay calculator.

The calculator can help you find what industry award you should be paid under and will ask you a number of questions about your employment, such as if you’re a full-time, part-time or casual worker. Generally, many professional associations or industry unions also offer free contract and wage reviews for their members and can be a good way to utilise existing services that you may already have.

Employees have the right to be paid the correct rate for all time worked, even for training, trial shifts or team meetings, according to the Ombudsman.

What if my payslip is wrong?

It’s against the law for employers to give you false or misleading payslips, the FWO states. In fact, the employer could even be taken to court for wage theft and companies and individuals could face a hefty fine, with possible imprisonment for individuals, if found guilty.

Before it gets anywhere near that stage, it could be worth speaking to your employer or using the FWO’s tool to write a letter to send it, requesting your full employment records. That way, you can check its records of payment against your own, and find any discrepancies.

The FWO encourages employees and employers to sort issues out themselves in the workplace where possible, and offers a range of resources that could help.

The Ombudsman recommends employees talk to their employer about their concerns. If the employer needs to pay back unpaid wages, the FWO states that they have to do so as soon as possible, as either part of a normal pay cycle or a special payment.

If you run into any complications with this process or can’t come to an agreement with your employer about how you should be paid, you could contact the FWO on 13 13 94 to lodge a complaint. Check you’ve got all the information you need, though, before calling.

Joining your relevant industry’s union or association might also be helpful when trying to seek fair pay and resolve workplace issues. As previously mentioned, generally, many of these organisations provide free counselling, support and legal advice to their members, which can be used to help with potential disputes or problems you may be having in the workplace.

Don’t forget about your super – check your payslip and your super account

Check the super stated on your payslip

A key point to check on your payslip is whether or not your correct superannuation entitlements are being paid.

You are entitled to be paid the 10.5% super guarantee on top of your gross income, which employers must pay at least quarterly, if you are:

• over 18 years old; or
• under 18 years old and working over 30 hours per week.

The super guarantee percentage will rise by 0.5% every financial year until it reaches 12%.

Before 1 July 2022, employers did not have to pay super guarantee for workers earning less than $450 a month, but now you have to pay regardless of the worker’s earnings. The Australian Taxation Office (ATO) has a handy tool to check if you are eligible to receive super from your employer.

Check your super account

Keep in mind that even if your payslip is showing super being paid, that doesn’t necessarily mean the correct amount of money is being transferred into your super account. The ATO recommends employees log in to their MyGov account and access their super records – via the ATO link in the portal – to check individual deposits. Majority of employers also don’t always pay your super at the same time as your payslips. According to the FWO, super has to be paid every three months, that is why often employers pay their employees’ supers quarterly.

Employees can also check their statements issued by their super fund. Most funds allow members to access their accounts online, or send paper statements. You can also usually call your fund and ask it to send a statement to you.

The ATO warns there are harsh penalties for employers who do not pay staff their correct super entitlements or offer a choice of super fund. If your employer fails to pay you the super guarantee at the correct amount and into the correct super fund, they may have to pay the ATO a super guarantee charge.

Where can I get help if my employer is not paying me correctly?

There are many ways to seek help if you believe you’re not receiving your rightful payments from your employer. Some contacts you can seek include:

• Fair Work Ombudsman: 13 13 94
• Australian Taxation Office: 13 28 61
• Legal Aid in your state, or a workplace lawyer
• Industry Association or Union (if you’re a member)

Originally by Ellie McLachlan, additional content and updates by Karen Yang

Cover image source: Fizkes/Shutterstock.com