AIHR Boot Camps are intensive HR training programs designed to rapidly upskill small cohorts, blending self-paced, specialized content with instructor-led, practical sessions, all guided by a program manager to ensure progress and impact.
Learn moreWhat are ordinary time earnings (OTE)? Ordinary Time Earnings (OTE) refer to the payments an employee receives for their ordinary work hours. This figure is used to calculate superannuation guarantee (SG) contributions under the Superannuation Guarantee (Administration) Act. OTE includes most regular earnings, such as salary, allowances, commissions, and shift loadings, but excludes overtime. Understanding…
What is payment in lieu of notice? Payment in lieu of notice (PILON) is a payment an employer makes to an employee when ending their employment immediately and not requiring them work through their notice period. It compensates the employee for the wages and entitlements they would have received during that time, and is often…
What is a pro rata salary? A pro rata salary refers to a portion of a full-time salary based on how many hours or days an employee works, compared to standard full-time hours. “Pro rata” is derived from the Latin, meaning “in proportion”, and is used to ensure part-time, contract, or temporary employees are compensated…
What are penalty rates? Penalty rates are mandatory higher pay rates awarded to employees who work outside normal hours, like weekends, public holidays, evenings, or late-night shifts. Industrial agreements or awards authorize them and reflect compensation for employees who are required to work during socially undesirable or inconvenient times. They recognize the personal and social…
What is annualized salary? Annualized salary is the total projected amount of money an employee earns in a year. It shows their yearly income, even if they’re paid at different intervals. Annualized salary differs from other pay calculations in that it focuses on total yearly earnings. Unlike hourly or monthly pay, annualized salary provides a…
What are ordinary hours? Ordinary hours are the standard hours an employee is expected to work, as agreed between the employer and employee. These are usually outlined in an award, enterprise agreement, or employment contract. For full-time employees, ordinary hours typically don’t exceed 38 hours per week (plus reasonable additional hours). The specific days and…
What is a rostered day off (RDO)? A rostered day off (RDO) is a scheduled day off work that an employee earns by working additional hours over a period of time. It’s typically part of an employee’s working arrangement under an award, enterprise agreement, or employment contract in Australia. RDOs are prearranged within the employee’s…
What is casual loading? Casual loading is an extra payment—typically around 25%—added to the base pay of casual employees. It’s meant to compensate for not receiving certain National Employment Standards (NES) entitlements, such as annual leave, personal/carer’s leave, notice periods, and redundancy pay. Since casual workers don’t have the same job security or benefits as…
What is compensable time? The term ‘compensable time’ refers to the hours an employee must be paid for under the U.S. Department of Labor’s (DOL) Fair Labor Standards Act (FLSA). This includes any time an employee must be present at their job or work location, even if they aren’t actively doing tasks (e.g., an emergency…
What is straight time pay? Straight time pay is the regular wage an employee receives during a standard pay period (e.g., 40 hours a week) for working regular hours at their standard rate. Generally, it does not include additional earnings, like bonuses, paid time off (PTO), or overtime pay. In this case, any hour worked…
