{"id":2036,"date":"2025-07-23T15:30:13","date_gmt":"2025-07-23T03:30:13","guid":{"rendered":"https:\/\/www.workstem.com\/au\/blog\/auto-draft\/"},"modified":"2025-07-24T12:48:19","modified_gmt":"2025-07-24T00:48:19","slug":"apprentice-wages-building-construction-award-2025","status":"publish","type":"post","link":"https:\/\/www.workstem.com\/au\/blog\/apprentice-wages-building-construction-award-2025\/","title":{"rendered":"Apprentice Wages in Building &amp; Construction Award 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Apprentices are the future of the construction industry \u2013 but paying them correctly can be tricky. The <\/span><b>Building and Construction Award<\/b><span style=\"font-weight: 400;\"> lays out specific wage rates for apprentices, which change as they progress through their training. As of 2025, these rates have increased (along with the annual minimum wage rise), so it\u2019s crucial to ensure you\u2019re up to date. Underpaying apprentices is sadly a common mistake, and it can lead to significant penalties and back-pay orders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this guide, we\u2019ll explain <\/span><i><span style=\"font-weight: 400;\">who<\/span><\/i><span style=\"font-weight: 400;\"> counts as an apprentice under the Award, <\/span><i><span style=\"font-weight: 400;\">how<\/span><\/i><span style=\"font-weight: 400;\"> apprentice wages are calculated (including differences for junior vs adult apprentices), <\/span><i><span style=\"font-weight: 400;\">what<\/span><\/i><span style=\"font-weight: 400;\"> the current rates are, and <\/span><i><span style=\"font-weight: 400;\">when<\/span><\/i><span style=\"font-weight: 400;\"> you need to raise those rates. In short \u2013 <\/span><b>are you paying your apprentices correctly?<\/b><span style=\"font-weight: 400;\"> Let\u2019s make sure you are.<\/span><\/p>\n<h2><b>Who Is Considered an Apprentice Under the Award?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Under the Building &amp; Construction Award (MA000020), an <\/span><b>apprentice<\/b><span style=\"font-weight: 400;\"> is someone employed under a formal training contract to learn a trade (like carpentry, bricklaying, plumbing, electrical (if covered on-site), etc.). The Award recognizes both <\/span><i><span style=\"font-weight: 400;\">adult apprentices<\/span><\/i><span style=\"font-weight: 400;\"> and <\/span><i><span style=\"font-weight: 400;\">school-based apprentices<\/span><\/i><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Junior apprentices:<\/b><span style=\"font-weight: 400;\"> These are apprentices who start under the age of 21. Most construction apprentices fall in this category. Their pay rates are a percentage of a qualified tradesperson\u2019s rate, starting lower and increasing each year or stage of the apprenticeship.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Adult apprentices:<\/b><span style=\"font-weight: 400;\"> If an apprentice is <\/span><b>21 or older<\/b><span style=\"font-weight: 400;\"> when they sign the training contract, they are deemed an adult apprentice. The Award gives adult apprentices special pay provisions (generally higher base pay \u2013 often at least the National Minimum Wage, which in 2025 is $948\/week, or the applicable apprentice rate, whichever is greater).<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>School-based apprentices:<\/b><span style=\"font-weight: 400;\"> These are high school students undertaking a part-time apprenticeship while still at school. They have pro-rated wages and some extra provisions (like being paid 25% of hours for the off-the-job training time). Essentially, for every day on the job, a school-based apprentice gets paid an extra 25% of those hours to account for the day they spend in training at school.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To be an apprentice under the Award, the person must be in a registered training contract (usually 3-4 years full-time if not school-based). If someone isn\u2019t signed up to a formal apprenticeship (say you just have a \u201ctrainee\u201d or labourer without a contract), then they should be paid the standard labourer rates, not apprentice rates \u2013 important to note so you don\u2019t accidentally underpay a non-apprentice by thinking you can pay them apprentice wages.<\/span><\/p>\n<h2><b>How Are Apprentice Wages Determined?<\/b><\/h2>\n<p><b>Apprentice wages<\/b><span style=\"font-weight: 400;\"> are calculated as a percentage of the full trade qualified rate. In this Award, that base is generally the <\/span><b>Level 3<\/b><span style=\"font-weight: 400;\"> rate (the pay for a qualified tradesperson in the relevant trade). The percentage depends on the <\/span><i><span style=\"font-weight: 400;\">year or stage<\/span><\/i><span style=\"font-weight: 400;\"> of the apprenticeship. Also, whether the apprentice completed Year 12 of high school affects the starting percentage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how it works in practice (for a 4-year apprenticeship, which is standard in construction trades):<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>1st Year Apprentice:<\/b><span style=\"font-weight: 400;\"> Typically starts around 50% \u2013 60% of the tradesperson\u2019s rate. If the person <\/span><i><span style=\"font-weight: 400;\">did not finish Year 12<\/span><\/i><span style=\"font-weight: 400;\">, they start at the lower end of that range; if they <\/span><i><span style=\"font-weight: 400;\">completed Year 12<\/span><\/i><span style=\"font-weight: 400;\">, they start a bit higher (the Award rewards completion of high school with a slightly better starting pay).<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>2nd Year Apprentice:<\/b><span style=\"font-weight: 400;\"> Jumps to around 65% \u2013 70% of the trade rate. Again, those who finished Year 12 will be at the higher end initially.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>3rd Year Apprentice:<\/b><span style=\"font-weight: 400;\"> Around 80% of the trade rate. By the third stage, both Year-12-completers and others usually converge to the same rate (the gap closes as the training progresses).<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>4th Year Apprentice:<\/b><span style=\"font-weight: 400;\"> Around 90% \u2013 95% of the trade rate, approaching full payment. By the end of the apprenticeship, they\u2019re just slightly under the qualified rate, since upon completion they\u2019ll jump to 100%.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, suppose a tradesperson\u2019s Award rate is about $27 per hour in 2025. A first-year (who finished Year 12) might start around $17\u2013$18\/hour, whereas one who didn\u2019t finish Year 12 might be around $16\/hour. By fourth year, both would be up around $26\u2013$27\/hour (just shy of the full rate).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s also a concept of <\/span><i><span style=\"font-weight: 400;\">competency-based progression<\/span><\/i><span style=\"font-weight: 400;\"> in this Award. This means an apprentice can progress to the next pay level earlier than 12 months if they achieve the required competencies for that stage. Not all apprenticeships use this (some stick strictly to time-based yearly progression), but it\u2019s an option. If using competency progression, you, as the employer, must bump up their pay as soon as they are signed off on the next stage \u2013 even if that\u2019s, say, after 9 months instead of 12. Always check the training contract and qualification requirements; don\u2019t hold someone back on first-year pay if they\u2019ve lawfully moved to second-year status.<\/span><\/p>\n<h2><b>2025 Apprentice Pay Rates: Quick Reference<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s put some actual numbers to these percentages for 2025. We\u2019ll use a common trade (Carpenter\/Joiner, which falls under this Award) as an example. The <\/span><b>Level 3 weekly rate<\/b><span style=\"font-weight: 400;\"> (tradie) as of 1 July 2025 is about <\/span><b>$1,068.40 per week<\/b><span style=\"font-weight: 400;\"> (roughly $28.12\/hr). Based on the Award\u2019s percentage scales:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>1st Year Apprentice<\/b><span style=\"font-weight: 400;\"> \u2013 <\/span><i><span style=\"font-weight: 400;\">Completed Year 12<\/span><\/i><span style=\"font-weight: 400;\">: approx 60% of trade rate. That comes to about <\/span><b>$655\u2013$670 per week<\/b><span style=\"font-weight: 400;\">, which is around $17.50\u2013$18\/hr. (If they did <\/span><i><span style=\"font-weight: 400;\">not<\/span><\/i><span style=\"font-weight: 400;\"> finish Year 12, first year is lower: roughly 55% of trade, about <\/span><b>$604\/week<\/b><span style=\"font-weight: 400;\">, or ~$16\/hr.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>2nd Year Apprentice<\/b><span style=\"font-weight: 400;\"> \u2013 roughly 70% of trade rate. That\u2019s around <\/span><b>$773 per week<\/b><span style=\"font-weight: 400;\"> (~$20.36\/hr) for someone who finished Year 12. (Not completed Year 12 might be closer to 65% ~ $720\/week, ~$19\/hr.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>3rd Year Apprentice<\/b><span style=\"font-weight: 400;\"> \u2013 roughly 80% of trade rate. This comes to about <\/span><b>$855\u2013$881 per week<\/b><span style=\"font-weight: 400;\"> (~$23.18\/hr) for either category (by third year the rates align).<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>4th Year Apprentice<\/b><span style=\"font-weight: 400;\"> \u2013 roughly 95% of trade rate. This is about <\/span><b>$1,015\u2013$1,040 per week<\/b><span style=\"font-weight: 400;\"> (~$27.39\/hr) \u2013 essentially almost full rate.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Now, <\/span><b>Adult apprentices<\/b><span style=\"font-weight: 400;\"> have a unique consideration: The Award says an adult apprentice must not suffer a pay cut when they start their apprenticeship if they were already employed full-time with that employer. Also, if they have no prior employment, there\u2019s usually either a special adult apprentice rate or the national minimum wage guarantee. In practice, by 2025 many adult first-year apprentices get at least <\/span><b>$1,023 per week<\/b><span style=\"font-weight: 400;\"> (which was noted as a 21+ apprentice carpentry rate). Interestingly, the data shows that for adult apprentices, their rate might remain the same throughout the apprenticeship (since it\u2019s already high) \u2013 effectively they start near the top of the apprentice pay scale and then just get the qualified rate at the end. For example, an adult carpentry apprentice in 2025 could be on about $27.55\/hour from the get-go, which is the same as a 4th-year youth apprentice\u2019s rate. So if you hire a mature-age apprentice, budget for a significantly higher wage than a teen apprentice.<\/span><\/p>\n<h2><b>Other Entitlements for Apprentices<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Pay isn\u2019t the only thing \u2013 apprentices have a few other special rights under the Award that employers must know:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Training time:<\/b><span style=\"font-weight: 400;\"> Apprentices must be allowed to attend their off-the-job training (like TAFE or trade school). That time is considered ordinary working hours \u2013 meaning you pay them for it, just as if they were on the job. For instance, if your apprentice is at TAFE one day a week, you still pay their normal daily pay for that day. You also continue to accrue their leave entitlements for that time. In short, no loss of pay for going to class.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Fees and textbooks:<\/b><span style=\"font-weight: 400;\"> The Award (and laws in some states) often require reimbursing apprentices for their TAFE\/training fees and required textbooks, usually after they\u2019ve completed certain milestones or a set period (like after 6 or 12 months of employment). Check clause details \u2013 but don\u2019t forget to budget for paying back course costs as required.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Overtime and shiftwork limits:<\/b><span style=\"font-weight: 400;\"> Apprentices under 18 <\/span><b>cannot<\/b><span style=\"font-weight: 400;\"> be made to work overtime or shiftwork unless they agree. And no apprentice (regardless of age) should do overtime\/shiftwork if it would interfere with their training attendance. Plus, any overtime or shift they do must be supervised (you can\u2019t put an apprentice on night shift alone).<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Allowances:<\/b><span style=\"font-weight: 400;\"> Generally, apprentices get the <\/span><i><span style=\"font-weight: 400;\">same types<\/span><\/i><span style=\"font-weight: 400;\"> of allowances as other workers (industry, tool, travel, etc.), but in some cases at a proportionate rate. The Award states that apprentices receive the same allowances, but some might be a percentage if the allowance is based on their \u201cstandard rate\u201d (which for apprentices might be lower). For simplicity, if an allowance is a flat dollar amount (like $19\/day travel), apprentices get the full amount; if it\u2019s tied to the ordinary rate (like industry 6%), it ends up scaled since their ordinary rate is lower. Just follow the Award\u2019s allowance clause \u2013 it often clarifies these nuances.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Adult apprentice guarantee:<\/b><span style=\"font-weight: 400;\"> As mentioned, if you take on an existing worker as an apprentice (say a 25-year-old who has been laboring with you and you sign them up to a carpentry apprenticeship), you cannot drop their pay. They must keep at least their prior rate if it\u2019s higher than the normal adult apprentice rate. This ensures no financial disadvantage to upskilling.<\/span><\/li>\n<\/ul>\n<h2><b>So, Are You Paying Them Correctly?\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To determine if you\u2019re paying your apprentice staff correctly in 2025, run through this checklist:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Correct base rate:<\/b><span style=\"font-weight: 400;\"> Check the apprentice\u2019s current stage (1st, 2nd, 3rd, 4th year or stage). Verify the Award rate for that stage in 2025. For example, if you have a second-year apprentice who finished Year 12, ensure you\u2019re paying $20.67 per hour (not $17.86).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Progression applied:<\/b><span style=\"font-weight: 400;\"> Ensure you have advanced the apprentice\u2019s pay at the proper time. If your apprentice \u201cJack\u201d started in Jan 2023, by Jan 2024 he should have moved from 1st to 2nd year rates, and in Jan 2025 moved to 3rd year rates \u2013 provided he\u2019s completed the required training modules. If Jack is still on 2nd year pay halfway into his third year, that\u2019s a red flag.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Adult vs junior:<\/b><span style=\"font-weight: 400;\"> If any apprentice is 21 or older, double-check that their rate meets at least the legal minimums for adults. For instance, a first-year adult carpenter should be getting at least ~$1058.38\/week ($27.85\/hr)\u2013 considerably more than a teenage first-year.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Allowances and OT:<\/b><span style=\"font-weight: 400;\"> Are you paying your apprentices allowances like others? (They often use the same allowance tables, so yes, they should get them.) Also, if they work overtime, do you pay them overtime rates? Apprentices aren\u2019t cheaper overtime labor \u2013 you must pay them overtime penalties too.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Training time paid:<\/b><span style=\"font-weight: 400;\"> Do you pay for the time apprentices spend at trade school or exams as if it were work time? You should. If you\u2019ve been docking pay or requiring them to \u201cmake up\u201d that time, that\u2019s non-compliant.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you find any discrepancies, fix them ASAP. The good news is apprentices will definitely appreciate it \u2013 many apprentices are quite mindful of their rates (they talk at TAFE!). By paying correctly, you not only avoid legal issues but also build goodwill. An apprentice who feels valued and fairly paid is more likely to stay on and become a great tradesperson for your company.<\/span><\/p>\n<h2><b>How Workstem Simplifies Building and Construction Award Compliance<\/b><\/h2>\n<p>Simplify award interpretation and payroll processing with <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/\" target=\"_blank\" rel=\"noopener\">Workstem<\/a>,<\/span> the all-in-one <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/\" target=\"_blank\" rel=\"noopener\">workforce management &amp; payroll software<\/a> <\/span>designed for every industry. Our system supports 122+ modern awards &amp; 34 EAs, including the Hospitality Industry Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.<\/p>\n<p>Managing payroll under the Hospitality Industry Award 2025 can be complex. Workstem\u2019s workforce management software ensures:<\/p>\n<ul>\n<li>Accurate award interpretation<\/li>\n<li>Automated penalty rates &amp; overtime calculations<\/li>\n<li>Compliant payslips &amp; record-keeping<\/li>\n<li>Seamless integrations with<span style=\"color: #3366ff;\"> <a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/product\/integrations\/xero\/\" target=\"_blank\" rel=\"noopener\">Xero<\/a>, <a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/product\/integrations\/netsuite\/\" target=\"_blank\" rel=\"noopener\">NetSuite<\/a><\/span>, and more<\/li>\n<\/ul>\n<p>Choose from our <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/pricing\/\" target=\"_blank\" rel=\"noopener\">Standard or Advanced plan<\/a><\/span> to suit your business needs, and stay Fair Work compliant with confidence.<\/p>\n<p><a href=\"https:\/\/www.workstem.com\/au\/contact\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #3366ff;\">Book a free demo<\/span><\/a> with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.<\/p>\n<h2><b>FAQs About the Building &amp; Construction Industry Award<\/b><\/h2>\n<p><b>Q1: What is a first-year apprentice wage?<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>A1:<\/strong> It\u2019s roughly <\/span><b>55\u201360%<\/b><span style=\"font-weight: 400;\"> of the full tradesperson rate, about <\/span><b>$600\u2013$670<\/b><span style=\"font-weight: 400;\"> per week in 2025.<\/span><\/p>\n<p><b>Q2: Do adult apprentices get paid more?<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>A2:<\/strong> Yes\u2014adult apprentices (21+) must receive at least the national minimum wage, often around <\/span><b>$1,023\/week<\/b><span style=\"font-weight: 400;\"> in 2025.<\/span><\/p>\n<p><b>Q3: How often do apprentice wages increase?<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>A3:<\/strong> Annually or by competency-based progression as apprentices complete each training stage.<\/span><\/p>\n<p><b>Q4: Do apprentices get allowances and overtime?<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>A4:<\/strong> Yes\u2014they receive the same allowances (travel, industry, tools) and must be paid overtime\/penalties per the Award.<\/span><\/p>\n<p><b>Q5: What happens upon qualification?<\/b><\/p>\n<p><b><\/b><span style=\"font-weight: 400;\"><strong>A5:<\/strong> Qualified apprentices move to the full tradesperson rate (Level 3 or above) from the next pay period.<\/span><\/p>\n<p><em><strong>Read More\uff1a<\/strong><\/em><\/p>\n<p class=\"page-title\"><em><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/building-construction-general-on-site-award-guide\/\" target=\"_blank\" rel=\"noopener\">Building and Construction General On-site Award Guide [MA000020]<\/a><\/span><\/em><\/p>\n<p><em><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/glossary\/building-construction-award\/\" target=\"_blank\" rel=\"noopener\">Building and Construction Award<\/a><\/span><\/em><\/p>\n<p class=\"page-title\"><em><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/fair-work-penalties-unpaid-wages-construction\/\" target=\"_blank\" rel=\"noopener\">How to Avoid Fair Work Penalties for Unpaid Wages in Construction<\/a><\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Apprentices are the future of the construction industry \u2013 but paying them correctly can be tricky. The Building and Construction Award lays out specific wage rates for apprentices, which change as they progress through their training. As of 2025, these rates have increased (along with the annual minimum wage rise), so it\u2019s crucial to ensure&#8230;<\/p>\n","protected":false},"author":16,"featured_media":2115,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[40,46,42],"class_list":["post-2036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-award-interpretation","tag-payroll","tag-popular"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Apprentice Wages in Building &amp; Construction Award 2025 - Workstem Australia<\/title>\n<meta name=\"description\" content=\"Ensure you\u2019re paying apprentices correctly under the 2025 Building &amp; Construction Award MA000020\u2014get latest wage rates, progression tips and compliance checklist.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.workstem.com\/au\/blog\/apprentice-wages-building-construction-award-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apprentice Wages in Building &amp; 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