Keeping your payroll system aligned with the latest retail award changes is crucial to ensure compliance. The General Retail Industry Award [MA000004] outlines minimum entitlements for retail employees across Australia, and these rates are reviewed annually by the Fair Work Commission. Typically, updates to award rates take effect on July 1 each year, meaning what applied for the 2024 financial year differs for 2025–2026. Failing to incorporate these changes can lead to underpayments, penalties, and disputes.
Why Staying Updated Matters?
The General Retail Industry Award sets out minimum pay rates, working conditions, and classifications for employees in the retail sector. Recent changes include:
- Wage Increases
A 3.5% rise in minimum and award wages effective from July 1, 2025, raising the hourly minimum wage from $25.65 to $26.54
- Rostering and Overtime Adjustments
Updated rules for part-time employees’ rostering and overtime entitlements, effective from July 5, 2024.
Failing to update your payroll system accordingly can lead to significant financial penalties and damage to your business’s reputation.
What is a Payroll System?
A payroll system is a critical tool used by businesses to manage and process employee payments. It automates the calculation of wages, taxes, and other deductions, ensuring that employees are paid accurately and on time. In the context of the General Retail Industry Award [MA000004], a payroll system helps employers comply with the award’s requirements by:
- Calculating Wages: Determining the correct pay rates, including overtime and penalty rates.
- Tracking Hours: Recording the hours worked by employees and identifying overtime triggers.
- Managing Deductions: Handling tax deductions, superannuation contributions, and other statutory requirements.
- Ensuring Compliance: Keeping up-to-date with changes in the Retail Award to avoid underpayments and penalties.
A robust payroll system can significantly reduce the administrative burden on HR and finance teams, while also minimising the risk of non-compliance with labour laws and awards.
How to Keep Your Payroll System Updated?
- Review the new rates
At the start of each financial year, download the updated pay guide from the Fair Work website. This guide details hourly rates, penalty rates, allowances, and overtime rules under the General Retail Industry Award.
- Adjust pay structures
Enter new base rates and penalty conditions into your payroll system. Override any outdated rates to prevent miscalculations during processing.
- Test sample payroll runs
Before your first pay run under new rates, process a test payroll for full-time, part-time, and casual employees. Verify overtime and penalty pay triggers correctly for weekend shifts or public holidays.
- Communicate changes
Inform employees of updated entitlements, especially if their base pay or allowance structure changes. Transparency reduces confusion and fosters trust. For instance, a local boutique might see casual employees’ penalty rates increase, while a large retail chain needs to update all 24 store rosters simultaneously.
- Utilise automated solutions
Consider using automated payroll solutions that can adapt to changes in the retail award, this way you don’t have to worry about reviewing or checking rates manually ever again, just enjoy accurate rates pulled from Fair Work everytime.
How Does Workstem Help?
Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.
Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and custom rule set. We have integrated our system with Xero and NetSuite as well to bring you a complete HR SaaS solution for your business.
Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!
FAQs About Retail Award Payroll
Q1: How often do retail award rates change?
A: Award rates under the general retail industry award are reviewed by the Fair Work Commission annually, with changes usually effective July 1.
Q2: What’s the difference between the retail award and the general retail industry award?
A: The term “retail award” covers sector-specific awards, but the General Retail Industry Award [MA000004] specifically defines minimum entitlements for most retail employees, including daytime, evening, weekend, and public holiday penalty rates. Employers should verify which category their staff fall under to apply for the correct award.
Q3: How can I ensure my payroll system remains compliant?
A: Choose a payroll solution that auto-syncs with Modern Award updates. Platforms like Workstem not only pull new rates but also adjust overtime and break rules in line with the retail award.
Q4: What happens if I don’t update my payroll system?
A: Failure to update may trigger Fair Work audits, back pay obligations, and potential fines. Inadequate alignment with the general retail industry award often leads to underpayment disputes, especially around complex rostering and penalty rate provisions
Read more:
General Retail Industry Award Guide [MA000004]
Updated Retail Award Rates 2024: What You Need to Know
Case Study 1: Revealing the Difference Between Woolworths’ EBA and Retail Award
![Rostering for General Retail Industry Award [MA000004]](https://www.workstem.com/au/wp-content/uploads/sites/7/2025/06/Add-a-heading-1-min-350x220.png)
