Author: Lehanne Bleumink, Gold Seal HR Services Manager

Annualised wage changes have begun! As notified in the previous news article, the introduction of the annualised wage requirements under the Banking, Finance and Insurance Award 2020 (BFI Award) commenced on 1 March 2020.

It’s important to note, the new rules start from the first full pay period on or after 1 March 2020. So for example, for an employee whose fortnightly pay starts on Thursday 27 February 2020, these new rules won’t apply until the next pay period commencing Thursday 12 March 2020. This provides a bit of time for employers to prepare.

The resources for employers to be able to manage the annualised wage changes are available on this website.

The following templates are included:

  • BFI Award Annualised Wage Information (new)
  • BFI Award Annualised Wage Record (new)
  • Template Letter to Employees re Annualised Wage (new)
  • Common Law Employment Agreement template – BFI Award (Updated, replace current version 10)
  • Common Law Employment Agreement template for High Income Earners (Updated, replace current version 10)
  • Guarantee of Earnings (Updated, replace current version 5)

The BFI award Annualised Wage Information template explains the annualised wage changes and how to use the templates provided. It explains that the new rules only affect full time employees who are paid an annualised wage under the BFI Award, together with other considerations for part time employees and high income earners.

The Annualised Wage Record template is provided to assist with meeting the record keeping requirements to record the employee’s start and finish times, and any unpaid breaks taken. Employers may choose to capture this record electronically through their payroll system. Employees have to acknowledge the record of hours they’ve worked is correct by signing in writing or electronically at the end of every pay period.

While employers will use the updated employment agreement template for future new employees, as it contains all necessary offset clauses for annualised wage arrangements, they may choose to use the Template Letter to Employees re Annualised Wage for existing employees at this time, as an alternative to signing a whole new employment agreement. Having said that, if the employee doesn’t have an employment agreement, or it is out of date, we highly recommend they use the employment agreement template rather than using the letter template.

It is important for employers to consider whether these changes impact any current employees, but also how to manage future employees and to remember that those full time employees paid an annualised wage must now be paid an annualised wage which strictly complies with the new clause 17 of the BFI Award. In future, when employing new full time employees, an employer may choose not to offer an annualised wage arrangement, but rather pay all the necessary BFI Award provisions when required. In this case the record keeping requirements for an annualised wage will not be required.

These changes can’t be ignored or employers potentially are at risk of not complying with the BFI Award in moving forward.

You can view the current BFI Award 2020 here which now includes the Clause 17 annualised wage changes.


For assistance on any of your HR/IR requirements – call Gold Seal on 03 9510 5100 or email