What is a modern award?

A modern award is a legal document set by the Fair Work Commission that establishes the minimum pay rates and conditions for an industry or occupation. Modern awards apply to most Australian employees in addition to the National Employment Standards, and they cover detail that the NES does not, including industry-specific allowances, penalty rates, and classifications.

There are about 121 modern awards in operation as of 2026. Major awards cover the retail industry, the hospitality industry, clerical and administrative work, the manufacturing industry, the building and construction industry, social and community services, and dozens of more specific occupations from cemetery workers to commercial sales agents. An employee is usually covered by one award, determined by the work they do rather than the industry their employer operates in.

Each modern award sets minimum hourly rates of pay, organised by classifications that reflect skill and experience. They also set penalty rates for weekend work, night work, public holidays, and overtime, allowances for travel, tools, uniforms, and meal breaks, and detailed rules about hours of work, rosters, and termination notice. Awards are usually increased on 1 July each year by the Fair Work Commission's Annual Wage Review.

Modern awards apply automatically to covered employees and cannot be reduced by individual contracts or agreements (the no-disadvantage test). They can be displaced by an enterprise agreement that has been registered with the Fair Work Commission, but the agreement must leave employees better off overall than the relevant award (the Better Off Overall Test, or BOOT). Employees can find their applicable award using the Fair Work Ombudsman's online Pay and Conditions Tool, or by contacting the Ombudsman directly on 13 13 94.