Table of content
- What do construction workers earn under the Building and Construction Award?
- What do other industries pay in 2025?
- Who gets better conditions in construction?
- Why do pay and conditions vary across industries?
- Where do construction workers rank in median earnings?
- How Workstem Simplifies Building and Construction Award Compliance
- FAQs About the Building & Construction Industry Award
Australia’s workforce spans many industries, each covered by its own modern award. The Building and Construction Award often grants higher base rates and multiple allowances. But do construction workers truly enjoy better pay and conditions compared to peers in retail, hospitality, or healthcare?
What do construction workers earn under the Building and Construction Award?
In 2025, entry‑level labourers (CW1) start at $26.81/hr, with skilled trades (e.g., carpenters) at $32.28/hr. On top of base rates, workers receive:
- Daily travel allowance ($21.94/day)
- Tool allowance for trades supplying their own kit (from $0.25/hr included in rates)
- Overtime at 150–200% after hours and on weekends
What do other industries pay in 2025?
| Industry Award | Base Hourly Rate | Key Allowances/Penalties |
|
General Retail Award |
$26.55 |
125% Saturdays, 150% Sundays, 225% Public Holidays |
| Hospitality Industry Award | $24.28 |
25% casual loading; 150% penalty rates |
| Mining Industry Award – Services | $26.17 |
Overtime at 150%; tool allowance |
Construction’s base rates and multiple allowances generally surpass those in retail and hospitality, having a higher take‑home pay.
Who gets better conditions in construction?
Construction’s award includes:
- Rostered Days Off (RDOs): Banked time for a paid day off monthly.
- Inclement‑weather pay: Paid stand‑down during rain or extreme heat.
- Break‑through pay: Double time if a meal break is missed.
Retail and hospitality have penalty rates but lack travel or wet‑weather allowances.
Why do pay and conditions vary across industries?
- Skill requirements: Trades need apprenticeships and licences, driving higher rates.
- Union influence: Construction unions negotiated travel, RDOs, and allowances over decades.
- Nature of work risks: Outdoor, hazardous work commands compensation via allowances and higher base rates.
- Market demand: Infrastructure booms can push pay above award minimums.
Where do construction workers rank in median earnings?
Construction median weekly earnings ($1,600) sit slightly below the all‑industries median ($1,700) due to apprentices earning training wages. Highly paid sectors like mining or IT often top the charts, but construction still leads many service industries.
How Workstem Simplifies Building and Construction Award Compliance
Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry. Our system supports 122+ modern awards & 34 EAs, including the Building & Construction Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.Workstem offers:
- Automated award interpretation
- Real-time wage calculations and timesheet syncing
- Employee self-service app for rosters and payslips
- Seamless integrations with Xero, NetSuite, and more
Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.
Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.
FAQs About the Building & Construction Industry Award
Q1: Do construction workers earn more than those in retail or hospitality?
A1: Yes, entry‑level construction base rates under the Building and Construction Award are generally higher than comparable levels in retail or hospitality awards. Plus, construction workers often receive extra travel and tool allowances that further boost their take‑home pay.
Q2: Are there similar allowances in other industries?
A2: Some industries offer allowances (e.g., uniform or laundry allowances in hospitality), but construction’s travel, wet‑weather, and height allowances are unusually comprehensive. These extras compensate for the outdoor, physically demanding nature of the work.
Q3: How can employers ensure they’re paying the correct award rates?
A3: Use a reliable payroll software for construction that supports multiple awards and auto‑updates with Fair Work changes. Alternatively, the Fair Work “Pay and Conditions Tool” can calculate correct rates—but manual checks are more time‑consuming and prone to error.
Read More：
Building & Construction Award [MA000020] 2025: Pay Rates & Rights
Apprentice Wages in Building & Construction Award 2025
Legally Compliant Rosters for Building & Construction in 2025
Building and Construction General On-site Award Guide [MA000020]
How to Avoid Fair Work Penalties for Unpaid Wages in Construction
