Electrical Award vs Building Award: What Is the Difference?

The Electrical Award usually covers employees of electrical, electronic and communications contractors. The Building Award usually covers general on-site building and civil construction work. The employer’s business, the employee’s duties and the available classification decide coverage, not the site alone.

Which awards are being compared?

The full names are:

• Electrical, Electronic and Communications Contracting Award 2020, MA000025
• Building and Construction General On-site Award 2020, MA000020

Both can apply on the same project. An electrician working for an electrical contractor may be under the Electrical Award. A carpenter, labourer or plant operator employed by the head contractor may be under the Building Award.

That is the first trap. Being on a building site does not automatically put everyone under the Building Award.

You can find more construction award guides in our Awards hub. For a classification and pay rate check, use the award rate checker.

Electrical Award vs Building Award at a glance

Payroll point	Electrical Award	Building Award
Main coverage	Electrical, electronic and communications contracting businesses	General building, civil construction and metal or engineering construction on-site work
Typical employees	Electrical mechanics, electrical fitters, linespeople, cable jointers and relevant communications workers	Carpenters, bricklayers, labourers, concreters, painters, plant operators and other listed construction classifications
Ordinary hours	Average of 38 hours per week	Average of 38 hours per week, commonly arranged through an RDO cycle
Permanent employee overtime	Generally 150% for the first 2 hours, then 200%	Generally 150% for the first 2 hours, then 200%
Casual loading	25%, subject to the award’s overtime calculation rules	25%, subject to the award’s overtime calculation rules
Travel provisions	Electrical contracting travel, fares and distant work rules	Construction-specific fares, travel patterns and distant work rules
Site conditions	Electrical-specific allowances and work conditions	Detailed site, height, underground, confined space and other construction allowances
Redundancy	Check the award, NES and any valid redundancy fund arrangement	Contains a construction industry redundancy scheme with its own accrual formula

These are general settings. Shiftwork, Sundays, public holidays, apprenticeships and project arrangements can change the final amount.

The key numbers for payroll

As at September 2026, both awards use an average of 38 ordinary hours per week for full-time employees. How those hours are arranged can differ by workplace and roster.

As at September 2026, permanent day workers under both awards are generally paid 150% for the first 2 hours of overtime and 200% after that. Sunday and public holiday work can attract different penalties. Casual overtime must be calculated under the wording of the relevant award. Do not simply add 25% to every penalty without checking the clause.

As at September 2026, the standard casual loading under both awards is 25%. That does not mean the two casual hourly rates are equal. The base classification rate, allowances and overtime method still matter.

The wage schedules applying from the first full pay period starting on or after 1 July 2026 should be loaded into payroll before processing September wages. There is no single Electrical Award rate or Building Award rate. Each award has multiple levels, apprentice stages and allowance rules.

Coverage comes before the pay rate

Here is the practical test. Start with the employer, then look at the worker.

1. What business does the employer operate?

An electrical contractor installing wiring, switchboards, communications cabling or control equipment will often fall within the Electrical Award’s industry coverage.

A general builder or civil contractor carrying out on-site construction will often fall within the Building Award.

A business can operate in more than one industry. In that case, examine the part of the business where the employee works and whether the award contains a suitable classification.

2. What work does the employee actually perform?

Do not rely on the title written in the employment contract. “Technician”, “installer” or “site worker” tells you very little.

Check the employee’s regular duties, trade qualifications, licence requirements, supervision responsibilities and level of skill. Then match those facts to the classification definitions and indicative tasks.

3. Is there a classification that fits?

An award normally needs both employer coverage and an employee classification. If no classification fits, do not force the employee into the nearest level just because its rate looks sensible.

For example, a licensed electrician employed by an electrical contractor is likely to fit an Electrical Award classification. A general labourer employed by a builder does not move to that award merely because they help an electrician carry materials.

RDOs and ordinary hours are handled differently

The Building Award is closely associated with construction RDO arrangements. A common pattern uses a 20-day, four-week cycle. Employees work 8 hours on each of 19 days, with 0.4 hours accrued per day toward the RDO.

That arrangement is not automatic for every employee. Check the roster clause, employment terms and any applicable enterprise agreement.

The Electrical Award also permits ordinary hours to be arranged through agreed work cycles and RDO arrangements. However, you should configure it from the Electrical Award rules rather than copying the builder’s calendar into the electrical contractor’s payroll.

This matters when an employee starts late in a cycle, takes unpaid leave or leaves before the scheduled RDO. Payroll needs to track accrued and taken RDO hours separately.

Allowances can produce a bigger difference than base rates

The two awards contain different allowance structures. Common Electrical Award issues include electrical licences, tools, travel, distant work, confined spaces and particular working conditions.

The Building Award has extensive provisions for construction work, including industry allowances, tools, travel, height work, underground work, wet work and other disabilities associated with a site.

Some allowances are all-purpose. That means they can form part of the rate used for overtime, leave or other calculations. Other allowances are reimbursement payments or apply only when a condition is present.

Do not create one payroll item called “site allowance” and use it for everything. Record the clause, trigger, amount or formula, tax treatment, super treatment and whether it is all-purpose.

Building Award redundancy needs special attention

The Building Award contains an industry-specific redundancy calculation. As at September 2026, an eligible employee with less than 12 months’ service generally accrues 1.75 hours of ordinary pay for each completed week of service. At 12 months or more, the figure is generally 2.4 hours per completed week, capped at 8 weeks’ pay.

This can operate differently from the National Employment Standards concept of redundancy. Check the award carefully when any Building Award employee leaves, including where the project finishes or the employee resigns.

Do not assume the same formula applies to an employee under the Electrical Award. Also check whether a valid redundancy fund or enterprise agreement changes how the obligation is met.

A sensible payroll check before the first pay run

For each employee, record:

1. The legal employer and its main business activities.
2. The award and exact classification.
3. Full-time, part-time, casual or apprentice status.
4. Ordinary hours, work cycle and RDO arrangement.
5. Overtime, weekend, shift and public holiday rules.
6. All-purpose allowances and reimbursements.
7. Travel, distant work and living-away arrangements.
8. The source and effective date of every rate.

Recheck coverage when duties change. A move from general site labouring into a formal electrical apprenticeship is not just a new pay rate. It can change the applicable award, classification, allowances and overtime calculation.