The fixed amount paid before any additions — no overtime, penalty rates, allowances, bonuses, casual loading or superannuation. In award-covered work it is the figure the other payments are calculated from.

What is Base salary?

Q: Does base salary include superannuation?

Usually not in Australia. Salaries are typically quoted excluding super and expressed as "plus super". A figure described as a package may include it, so it is worth confirming which basis is being used.

Q: What is the difference between base salary and gross pay?

Base salary is the fixed component. Gross pay is everything actually earned in a period — base plus overtime, penalties, allowances and any bonus. Gross is what appears on the payslip; base is the rate it was built from.

Q: Can base salary be below the award rate?

No. It cannot fall below the minimum for the employee’s classification under the applicable modern award, or the national minimum wage where no award applies. That holds regardless of what the contract says or whether the employee agreed.

Updated 29 Aug 2026 • 5 min read

Base salary is the fixed amount an employee is paid before any additional payments — no overtime, penalties, allowances, bonuses or superannuation. In award-covered work it is the figure everything else is calculated from, which is why getting it wrong compounds through every other line on the payslip.

This glossary article about base salary provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

References HR Hub disclaimer Modern Awards Fair Work

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What base salary excludes

Base salary is the fixed component only. It does not include:

Overtime
Penalty rates for evenings, weekends and public holidays
Allowances — tool, laundry, travel, first aid
Bonuses and commission
Casual loading
Superannuation, which sits on top

In Australian job ads, salary is usually quoted excluding superannuation and stated as "plus super". A figure quoted as a package may include it — worth confirming, since the difference is material.

Why the base figure compounds

In award-covered work the base rate is a multiplier. Penalty rates, overtime and loadings are all expressed as percentages of it, so an error of a dollar an hour in the base does not stay a dollar — it becomes a dollar and a half on Saturday, two dollars on Sunday, and more again on a public holiday.

Compounded across a roster and backdated over months, small base-rate errors are how underpayments reach material amounts without anyone noticing a single obviously wrong payslip. See the award rate guides for current minimum rates by classification.

Base salary and the award minimum

An employee\u2019s base rate cannot fall below the minimum for their classification under the applicable modern award, or the national minimum wage where no award applies. Paying above it is fine; paying below it is a breach regardless of what the employment contract says or whether the employee agreed.

Annualised salary arrangements can absorb penalties and overtime into one figure, but they carry their own conditions — including a reconciliation requirement to confirm the employee is no worse off than the award would have made them.

Key takeaways

Base salary is the fixed component before overtime, penalties, allowances, bonuses and super
Australian ads usually quote salary "plus super" — confirm whether a package figure includes it
Penalties and overtime are percentages of the base, so base errors compound
The base cannot fall below the award minimum for the classification

RosterElf applies the correct award rate to every shift, so the base rate underneath the penalties is right before payroll sees it.

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Written by

Steve Harris

Workforce Management and HR Strategy Expert

Steve Harris has spent over a decade advising businesses in hospitality, retail, healthcare, and other fast-paced industries on how to hire, manage, and retain great staff. At RosterElf, he focuses on sharing actionable advice for business owners and managers — covering everything from smarter interview techniques and compliance with Australian employment laws, to building positive workplace cultures.

Related resources

Explore more guides and definitions

Award rate guides Award pay checker Salary pay calculator Salary On-target earnings (OTE)Ordinary time earnings Allowances

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