Allowances under the SCHADS Award are one of the most common sources of payroll errors. Many providers struggle to interpret which allowances apply, how they’re calculated, and when they need to be paid. This video breaks down the seven core allowances within the SCHADS Award so you know what to look for and where mistakes often happen. If you’re managing payroll under SCHADS, this guide will help you understand the key conditions behind each entitlement.
The SCHADS Award is highly specific and detailed, yet Fair Work provides very little practical guidance on how to stay compliant. Reading through the full award can take hours, so this guide focuses on the key allowances you must apply when they are triggered.
Allowances are additional payments made to employees who carry out certain tasks, use their own tools or equipment, or work in conditions that are unpleasant or hazardous. With Fair Work increasing compliance activity, it’s important to understand which allowances apply in each situation.
This video is general guidance. You should always seek tailored advice from a qualified payroll professional or accountant.
If you do not provide the required uniform to your employees, you must pay the clothing and equipment allowance.
The amount is:
You pay whichever amount is the smaller of the two.
If you supply uniforms but do not launder them for free, you must pay a laundry allowance.
The amount is:
Again, you pay whichever amount is smaller.
If a qualified first aider is expected to perform first aid duties on a shift, they are entitled to a first aid allowance.
If you require an employee to work overtime but do not provide them with a meal, you must pay the meal allowance.
You may supply a meal if facilities allow. If not, you must pay:
This applies if an employee is required to use their own car for work duties.
The current amount is:
If an employee is required to be on call for certain days of the week, you need to determine whether this falls within or outside their ordinary hours.
If the requirement is outside ordinary hours, the employee must receive an allowance.
This allowance applies when an employee works for more than one hour in places where artificial heating raises the temperature.
Payment rates are:
These are the seven key allowances you must pay if you operate under the SCHADS Award. Making sure they are applied correctly is essential for compliance, payroll accuracy, and avoiding costly back payments.
If you have questions about the SCHADS Award or want to automate these calculations so they run correctly every time, Pay Cat can help.
When does the clothing and equipment allowance apply under SCHADS?
It applies when an employer does not provide the required uniform. The allowance is paid per shift or per week, whichever amount is smaller.
What is the laundry allowance?
If you provide uniforms but do not launder them at your cost, employees must receive a laundry allowance based on shift or weekly rates.
Do part time and casual employees receive the first aid allowance?
Yes. They are paid 44 cents per hour up to a maximum of $16.80 per week if they are required to perform first aid duties.
What triggers the SCHADS meal allowance?
An employee is entitled to the meal allowance if they work overtime and you do not provide a suitable meal.
How is the SCHADS on-call allowance calculated?
It is a percentage of the employee’s standard rate, with different percentages for weekdays versus weekends and public holidays.
If you want to see how Pay Cat automates SCHADS Award compliance, including allowances, penalties, and shift conditions, you can learn more here:
https://www.paycat.com.au/schads