Site allowance vs industry allowance under MA000020

The industry allowance under MA000020 is a compulsory award entitlement. A site allowance is usually project-specific and comes from an enterprise agreement, contract or site arrangement. They are not interchangeable, and whether both apply depends on the instruments covering the employee.

The short version

The Building and Construction General On-site Award 2020, MA000020, recognises that construction employees work with recurring industry-wide disabilities. These can include changing workplaces, outdoor conditions, dust and limited amenities. The industry allowance compensates for those general conditions.

A site allowance is different. It normally relates to conditions, location or productivity requirements at a particular project. People often use the term loosely, so you need to find the document that creates the payment.

MA000020 does not publish one universal site allowance that becomes payable whenever an employee enters a construction site. The award does contain other project and condition-based allowances, including multistorey, underground work, tools, travel and certain special rates. Those entitlements should not simply be renamed as a site allowance.

For more coverage and classification guidance, see the Awards hub. You can also test the employee's classification and current minimum rate with the Award Rate Checker.

Industry allowance rates under MA000020

As at October 2026, the key award settings are:

• The industry allowance is 6% of the standard weekly rate for employees in the general building and construction, civil construction, and metal and engineering construction sectors.
• The industry allowance is 4.8% of the standard weekly rate for employees in the residential building and construction sector.
• A full-time week under MA000020 averages 38 ordinary hours.
• The award casual loading is 25%, although the exact calculation must follow the award's current casual and penalty provisions.

These percentages are not applied to each employee's personal hourly rate. They are applied to the award's standard weekly rate. Under MA000020, that standard is linked to the specified classification in the award, rather than whatever amount the employee happens to earn.

This distinction matters after each annual wage review. When the standard weekly rate changes, the dollar value of the industry allowance changes as well. Payroll should use the current consolidated award and pay guide applying from the relevant pay period.

Site allowance compared with industry allowance

Question	Industry allowance	Site allowance
What creates it?	MA000020	Usually an enterprise agreement, employment contract or documented site arrangement
Who receives it?	Covered employees in the relevant construction sector	Employees who meet the project-specific conditions
How is it calculated?	6% or 4.8% of the standard weekly rate	The amount or formula stated in the governing document
Is it all-purpose?	Yes, it forms part of the award ordinary hourly rate	Only if the governing document says so, or its legal treatment requires it
Does it apply at every site?	Generally applies while the employee is covered and performing relevant work	No, it is usually limited to a named project or type of site
Can both be payable?	Yes	Yes, unless the applicable instrument validly provides otherwise

The name on the payslip does not settle the question. If an enterprise agreement calls a payment a site allowance, read its allowance clause, definitions, rates schedule and interaction provisions. Some agreements say the payment is additional to award entitlements. Others explain that it compensates for specified site conditions or absorbs listed allowances.

An employment contract can promise more than the award, but it cannot remove the employee's minimum award entitlement. A general salary or allowance may only offset award amounts where the arrangement is lawful, clear and properly recorded.

Why the all-purpose treatment matters

The MA000020 industry allowance is an all-purpose allowance. In plain English, it forms part of the employee's ordinary hourly rate for award calculations where that rate is used.

For a full-time weekly calculation, the basic structure is:

1. Find the employee's classification minimum weekly rate.
2. Find the current standard weekly rate.
3. Multiply the standard weekly rate by 6% or 4.8%, depending on the sector.
4. Add the industry allowance and any other applicable all-purpose amounts.
5. Divide the weekly total by 38 to establish the relevant ordinary hourly rate.
6. Apply overtime, penalty and other calculations as required by the award.

As at October 2026, weekday and Saturday overtime commonly starts at 150% for the first 2 hours and rises to 200% after 2 hours under MA000020, subject to the particular overtime provision and work pattern. That is why leaving the industry allowance outside the ordinary hourly rate can create an underpayment greater than the missing allowance itself.

Do not automatically treat a site allowance the same way. Its source might say it is paid for all hours, ordinary hours only, hours physically worked on the project, or as a flat weekly amount. It may also contain rules for leave, rostered days off, overtime and absences.

Work out which industry percentage applies

The 6% and 4.8% rates are based on the sector and work covered by MA000020. Do not choose the lower percentage just because a company mainly builds houses, or the higher percentage because a project looks large.

Check:

• the type of construction being performed
• the employee's actual duties
• the award's residential and general construction coverage
• whether an enterprise agreement applies
• whether the employee moves between projects or sectors
• the dates and hours worked in each setting

If an employee moves from residential work to a civil or commercial project, payroll may need an effective-dated change. Keep the project allocation in the time record. A note added months later is harder to defend than a daily job or cost-code entry.

Can the two allowances be paid together?

Yes, they can be. Suppose a commercial construction employee is entitled to the 6% award industry allowance. The employee's enterprise agreement also provides a weekly site allowance for a named project. The usual starting point is that both obligations must be considered.

Do not simply deduct one from the other. First read the agreement's interaction and offset clauses. Confirm whether the agreement rate already incorporates particular award amounts, and whether the employee remains better off overall under the agreement.

Also check for separate award entitlements. A worker on a high-rise project might qualify for a multistorey allowance. Another worker might qualify for underground, first aid, tools or travel payments. A generic payroll item called “site allowance” does not prove those obligations have been met.

Payroll checks before the next pay run

Start with the employee, not the allowance code. Confirm the applicable award or enterprise agreement, classification, construction sector and project.

Then check the following:

• Is the industry allowance set at 6% or 4.8% of the current standard weekly rate?
• Is it included in the ordinary hourly rate for relevant award calculations?
• Does a separate document create a site allowance?
• Is the site payment hourly, daily, weekly or project-based?
• Does it continue during annual leave, personal leave or rostered days off?
• Is it included when calculating overtime or penalties?
• Does super apply under the ordinary time earnings rules?
• Are the allowance and project dates visible in payroll records?

Use separate pay items for separate legal entitlements. Clear labels such as “MA000020 industry allowance” and “Project site allowance” make checking much easier. They also reduce the risk of one payment being accidentally removed when an employee transfers between sites.