Pay slips: what has to be on them?

Hey there and thanks for your question…it’s a good one. Let’s get a few facts around pay slips down then get you your answer.

Pay slips ensure that employees receive the correct pay and entitlements and help employers to keep accurate and complete records

When are pay slips given?

Pay slips have to be given to an employee within 1 working day of pay day, even if an employee is on leave.

How are pay slips given?

Pay slips have to be in either electronic form or hard copy. Electronic pay slips must have the same information as paper pay slips.

What information has to be on a pay slip?

Pay slips have to cover details of an employee’s pay for each pay period. Below is a list of what should be included:

• employer’s and employee’s name
• employer’s Australian Business Number
• pay period
• date of payment
• gross and net pay
• if the employee is paid an hourly rate:

1. the ordinary hourly rate;
2. the number of hours worked at that rate; and
3. the total dollar amount of pay at that rate

• any loadings (including casual loading), allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from an employee’s ordinary hourly rate. For example, a note could be included on a pay slip that the hourly rate incorporates the relevant casual loading.
• the pay rate that applied on the last day of employment
• any deductions from the employee’s pay, including:

1. the amount and details of each deduction; and
2. the name, or name and number of the fund / account the deduction was paid into

• any superannuation contributions paid for the employee’s benefit, including:

1. the amount of contributions made during the pay period (or the amount of contributions that need to be made); and
2. the name, or the name and number, of the superannuation fund the contributions were made to.

Should leave balances be on a pay slip?

While it’s best practice to show an employee’s leave balances on their pay slip, it’s not a requirement. The lawful requirement is that Employers have the obligation to provide an employee of their leave balance if the employee asks for it. Make sense? 

The scary stuff

Penalties associated with failing to provide employees with a pay slip or failing to include the right information can be significant. The Fair Work Ombudsman recently secured a fine of over $60,000 against the operators of a Gold Coast restaurant for breaching record-keeping and pay slip laws.

The smart stuff helping you out

Like many things HR and employment-related, taking the time to get things right is a good investment. While you don’t know what you don’t know, ignorance of your obligations as an employer rarely succeeds when the Fair Work Ombudsman becomes involved. That’s where Bare Bones Consulting can help…call us for a chat on how we can help you or check out our “HR Compliance & Risk Management” page on our website. Not the most inspiring name for a webpage we agree…but our advice can save you big time!