Annualised Wages · MA000027

Health Professionals Award Annualised Wage Arrangements

1 Jul 2026 Updated 1 Jul 2026 By Fitz HR 6 min read Reviewed against FWO Pay Guide MA000027

Paying a health professional a salary does not make Award obligations go away. The Health Professionals Award MA000027 allows annualised wage arrangements under clause 22 — but only under strict conditions, with a reconciliation that trips up most practices.

Under MA000027 clause 22, a full-time employee can be paid an annualised wage by written agreement that absorbs specified Award entitlements (such as penalties and overtime). The arrangement must set outer-limit hours, and the employer must reconcile the salary against what the Award would have paid at least every 12 months (and on termination), paying any shortfall within 14 days. Records of start, finish and unpaid-break times must be kept and signed.

Rates current as at 2026-07-01 (Annual Wage Review), sourced from the Fair Work Ombudsman Pay Guide MA000027. Next review 2027-07-01.

Annualised Wages — Clause 22

Who: full-time employees, by written agreement
Outer-limit hours: must be specified; excess is paid separately
Reconciliation: at least every 12 months and on termination
Shortfall: paid within 14 days
Records: start/finish and unpaid breaks, signed each pay period

What an Annualised Wage Can Do

Under clause 22, a written annualised wage can absorb specified Award entitlements — such as minimum weekly wages, penalty rates, overtime and allowances — into a single salary. The agreement must identify which provisions are absorbed and how the annualised wage was calculated.

Outer-Limit Hours

The arrangement must set outer limits on the number of penalty and overtime hours the salary covers in a pay period. Hours worked beyond those limits are not covered by the salary and must be paid separately at the applicable Award rate. Treating a salary as covering unlimited hours is the single biggest compliance failure here.

The Mandatory Reconciliation

At least once every 12 months — and when the arrangement ends or the employee leaves — the employer must reconcile the annualised wage against what the employee would have earned under the Award for the hours actually worked. Any shortfall must be paid within 14 days. To do this, the employer must keep a record of start times, finish times and unpaid breaks, and have the employee sign it each pay period or roster cycle.

Common Mistakes That Trigger Audits

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Assuming a salary covers unlimited hours. Hours beyond the outer limits must be paid separately.
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Skipping the annual reconciliation. It is mandatory, and any shortfall must be paid within 14 days.
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Not keeping signed time records. Start, finish and unpaid-break records must be kept and signed — without them, the arrangement is not compliant.

Frequently Asked Questions

Can a health professional be paid an annualised salary?
Yes — under clause 22 of MA000027, by written agreement, for full-time employees. The salary can absorb specified Award entitlements but must meet strict conditions.
What is the annualised wage reconciliation?
At least every 12 months (and on termination), the employer compares the salary to what the Award would have paid for the hours actually worked, and pays any shortfall within 14 days.
What records must be kept for an annualised wage?
Start times, finish times and any unpaid breaks — recorded and signed by the employee each pay period or roster cycle. Without them the arrangement is non-compliant.
What happens if the salary does not cover the hours worked?
The employer must pay the shortfall within 14 days of the reconciliation. Hours beyond the outer limits must also be paid separately at the applicable rate.

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Health Professionals Award Annualised Wage Arrangements — FAQ

Can a health professional be paid an annualised salary? Yes — under clause 22 of MA000027, by written agreement, for full-time employees. The salary can absorb specified Award entitlements but must meet strict conditions.

What is the annualised wage reconciliation? At least every 12 months (and on termination), the employer compares the salary to what the Award would have paid for the hours actually worked, and pays any shortfall within 14 days.

What records must be kept for an annualised wage? Start times, finish times and any unpaid breaks — recorded and signed by the employee each pay period or roster cycle. Without them the arrangement is non-compliant.

What happens if the salary does not cover the hours worked? The employer must pay the shortfall within 14 days of the reconciliation. Hours beyond the outer limits must also be paid separately at the applicable rate.