EBA rate increases: how to keep payroll current

Keep payroll current by treating every EBA increase as a controlled change: confirm the operative clause and date, map every affected rate, test the build, then backpay from the legal start date if payroll went live late.

Start with the actual agreement clause

There is no single EBA increase that applies across Australian construction. Each enterprise agreement sets its own rates, increase dates and calculation rules.

Some agreements add a fixed percentage each year. Others publish a new wage schedule. Some increase allowances and minimum super contributions separately. A clause may also tie an increase to a Fair Work Commission decision or another external event.

Do not rely on a site email saying, “Rates go up 3 per cent next week.” Pull out the approved agreement and check:

• the exact operative date
• which classifications receive the increase
• whether apprentices and trainees use separate tables
• whether the percentage applies to wages, allowances or both
• which allowances are flat amounts
• whether overtime and penalties use the ordinary hourly rate
• whether casual loading is added before or after another calculation
• whether the agreement requires a minimum weekly super contribution
• the rounding rule, if one is stated

You can find more practical guidance in the EBA payroll hub.

Check the date before changing a rate

An increase may start at the beginning of the first full pay period on or after a date. It may instead start on the date itself. Those are not the same thing.

Say an increase takes effect on 1 July 2026. For a weekly pay period running Monday to Sunday, 1 July might fall halfway through the week. If the agreement says the increase applies from 1 July, the pay period may need to be split. If it says the first full pay period on or after 1 July, the new rate may begin the following Monday.

Also check whether the agreement was approved after its stated wage date. The approval decision, commencement rules and wording of the agreement determine whether arrears are due.

An agreement does not simply stop applying when its nominal expiry date passes. It generally continues until it is replaced or terminated under the Fair Work Act. So do not revert workers to award rates just because the nominal expiry date has arrived.

Map every amount linked to the base rate

Changing one hourly rate is rarely enough. Construction payroll has plenty hanging off that number.

Review ordinary hours, overtime, shift penalties, weekend work, public holiday rates, casual loading, annual leave payments, leave loading and redundancy contributions. Also inspect fares, travel, site, industry, tool and meal allowances.

Some allowances increase with wages. Others have their own annual increase. Some stay fixed until the agreement says otherwise.

Here is a fictional example showing the checks for an increase effective 1 July 2026. These are example amounts only, not rates from a particular agreement.

Payroll item	Old setting	New setting	What payroll should check
Ordinary hourly rate	$42.00	$43.68	4 per cent increase
Time-and-a-half overtime	$63.00	$65.52	Multiplier still uses the updated base
Double time	$84.00	$87.36	No old base rate remains in the formula
Site allowance	$2.30 per hour	$2.37 per hour	Separate 3 per cent allowance increase
Minimum weekly super	$270.00	$280.00	Compare the EBA floor with statutory SG

As at September 2026, the statutory super guarantee rate is 12 per cent, and that rate has applied since 1 July 2025. An EBA can still require more than the statutory amount, including a fixed minimum contribution for an eligible week.

Use the minimum weekly super calculator when an agreement contains that kind of floor. Compare the agreement amount with the statutory SG calculation and apply whichever obligation requires the higher contribution, subject to the wording of the agreement and super law.

Do not assume an award increase changes the EBA rate

The Fair Work Commission reviews modern award minimum wages each year. That does not automatically mean every enterprise agreement rate rises by the same percentage.

First, read the agreement. It may expressly incorporate annual wage review increases. It may guarantee a margin above an award. Or it may contain fixed increases with no direct link to the award review.

Even where the agreement has fixed rates, the employer must make sure each worker remains better off overall than under the relevant modern award. Award changes can affect that comparison, especially where crews work regular overtime, nights, weekends or particular travel patterns.

Do not compare only the Monday to Friday base rate. Test representative rosters and common work patterns. Include allowances, overtime, penalties, loadings and other monetary benefits.

Build a proper payroll change sheet

A simple change sheet prevents plenty of grief. Give each update a clear record containing:

1. Agreement name and version.
2. Clause and wage schedule reference.
3. Old and new rates.
4. Effective date.
5. First affected pay period.
6. Linked pay items.
7. Super treatment.
8. Employee groups and classifications affected.
9. Person who entered the change.
10. Person who checked it.

Keep the source document with the change record. As at September 2026, employee records generally need to be kept for 7 years. Payslips must generally be given within 1 working day of payment. Those records matter if a worker, union, auditor or Fair Work inspector later asks how a rate was calculated.

Test before the first live pay

Run a parallel calculation for a small but useful sample. Pick workers who expose different parts of the agreement, not five people all working the same roster.

A sensible test group could include:

• a full-time tradesperson on ordinary hours
• a worker with weekday overtime
• a night-shift worker
• a casual employee
• an apprentice at a wage progression point
• someone receiving the minimum weekly super amount
• a worker with fares, travel or site allowances

Check gross pay line by line. Then check super, tax, leave accruals, payroll costing and the payslip description. If pay rates feed job costing, also confirm that projects receive the new labour cost from the correct date.

Look for hard-coded amounts. These often hide in overtime formulas, recurring allowances, templates, imported timesheets and manual pay adjustments.

Fix late increases with a clear backpay calculation

If the increase was missed, calculate the difference from the agreement’s correct effective date. Do not quietly add a few dollars to the current rate and hope it balances out.

Recalculate each affected pay period using the hours and conditions that applied at the time. Include overtime, penalties, loadings, allowances, leave payments and super where they were affected.

Show backpay clearly on the payslip. Keep a worksheet showing the original amount, corrected amount and difference for each period. Check the tax treatment through the payroll system rather than manually guessing withholding.

Tell workers what happened in plain English. State the affected dates, what was corrected and when payment will be made. If the error spans several months or involves many employees, get workplace relations and payroll advice before finalising the correction.

Keep a forward EBA calendar

The easiest increase to fix is the one you did not miss. Record every known wage, allowance, apprentice progression, super and contribution date when the agreement is first loaded.

Set reminders at least 60 days and 30 days before each event. That gives the team time to confirm the clause, update payroll, test calculations and answer site questions before payday.

Also review the calendar when an agreement is varied, replaced or terminated. One updated schedule can change several future events. The diary should point back to the approved document, not an old spreadsheet saved on someone’s desktop.