Understanding how you’re paid in the construction industry can be confusing. Awards, enterprise agreements, over-award payments — it all affects what ends up in your bank account each week. Here’s a plain-English guide to construction pay rates in Western Australia.
What Is an Award?
An award (formally called a Modern Award) is a legal document that sets the minimum pay rates and conditions for workers in a specific industry or occupation. Awards are set by the Fair Work Commission and apply across Australia.
Awards cover:
- Minimum hourly and weekly pay rates
- Overtime rates
- Penalty rates (weekends, public holidays, night shifts)
- Allowances (travel, tools, height, confined space)
- Leave entitlements
- Hours of work
- Redundancy provisions
The key awards covering construction workers in WA include:
Building and Construction General On-site Award 2020
The main award covering on-site construction workers — labourers, tradespeople, operators, and leading hands working on building and construction projects.
Electrical, Electronic and Communications Contracting Award 2020
Covers electricians, electrical workers, and communications workers.
Plumbing and Fire Sprinklers Award 2020
Covers plumbers, gasfitters, drainers, roof plumbers, and fire sprinkler installers.
Joinery and Building Trades Award 2020
Covers joiners, shopfitters, and stair builders working off-site (in workshops).
Award Pay Rates
Award rates are the legal minimum. They’re updated annually (usually each July) following the Fair Work Commission’s Annual Wage Review.
As a guide, minimum weekly rates under the Building and Construction General On-site Award include:
- Construction Worker Level 1 (CW1 — labourer): Approximately $900 to $950 per week
- Construction Worker Level 3 (CW3 — tradesperson): Approximately $1,000 to $1,050 per week
- Construction Worker Level 6 (CW6 — advanced tradesperson): Approximately $1,050 to $1,100 per week
- Construction Worker Level 8 (CW8 — leading hand/supervisor): Approximately $1,100 to $1,200 per week
Note: These are approximate figures. Always check the current rates on the Fair Work Ombudsman website for exact, up-to-date figures.
What Is an Enterprise Agreement (EBA)?
An Enterprise Agreement (also called an EBA or EA) is a legally binding agreement between an employer and their employees that sets pay and conditions above the award minimum. EBAs are negotiated between the employer and workers (usually through a union) and approved by the Fair Work Commission.
EBAs are common on major construction projects in Perth, particularly:
- Government-funded projects (Metronet, hospitals, schools)
- Large commercial projects (office towers, shopping centres)
- Major civil and infrastructure projects
- Mining construction projects
What EBAs Typically Include
- Higher base pay rates than the award (often 20 to 40 percent above award)
- Better overtime and penalty rates
- Additional allowances (site allowance, travel allowance, living away from home allowance)
- Redundancy provisions above the award minimum
- Income protection insurance
- Additional leave provisions
- Specific working conditions for the project
EBA Pay Rates
EBA rates on major construction projects in Perth are significantly higher than award rates. As a guide:
- Labourer (EBA): $35 to $45 per hour base rate
- Tradesperson (EBA): $45 to $55 per hour base rate
- Leading hand (EBA): $50 to $60 per hour base rate
With overtime, allowances, and penalties, EBA workers on major projects can earn well above $100,000 per year.
Over-Award Payments
Many employers pay above the award minimum without having a formal EBA. This is called over-award payment. It’s common in Perth’s construction industry because:
- The skills shortage means employers need to compete for workers
- Award rates alone are often not enough to attract and retain experienced tradespeople
- Market forces drive rates above the legal minimum
Over-award payments are at the employer’s discretion and can be adjusted. They don’t have the legal protections of an EBA.
Common Allowances
Construction workers in WA may be entitled to various allowances on top of their base rate:
Award Allowances
- Tool allowance: Paid to tradespeople who supply their own tools
- Industry allowance: Compensates for the unique conditions of construction work
- Travel allowance: For travel to sites beyond a certain distance
- Height allowance: For working at heights above a certain level
- Confined space allowance: For working in confined spaces
- Hot work allowance: For working in extreme heat conditions
- First aid allowance: For workers appointed as first aiders on site
EBA and Site-Specific Allowances
- Site allowance: A per-hour allowance for working on a specific site — can range from $3 to $8+ per hour on major projects
- Living away from home allowance (LAFHA): For workers who need to live away from their usual residence for work
- Meal allowance: When required to work beyond normal hours without notice
- Underground allowance: For tunnel and underground work
Overtime and Penalty Rates
Under the Award
Standard overtime rates under the Building and Construction General On-site Award:
- Monday to Friday overtime: First 2 hours at time and a half (1.5x), then double time (2x)
- Saturday: First 2 hours at time and a half, then double time
- Sunday: Double time for all hours
- Public holidays: Double time and a half (2.5x)
Under EBAs
EBA overtime rates are often more generous. Some EBAs pay double time for all overtime hours, including Saturday work.
Superannuation
All construction workers are entitled to superannuation (super) on top of their wages. The current rate is 11.5% of ordinary time earnings (increasing to 12% from 1 July 2025).
Many construction workers in WA have their super paid into CBUS (Construction and Building Unions Superannuation) or Australian Super, but you can choose your own fund.
Redundancy
Construction work is project-based, meaning redundancy is common when projects end. The Building and Construction General On-site Award provides for redundancy payments based on length of service.
EBAs often have enhanced redundancy provisions, sometimes including contributions to an industry redundancy fund (like ACIRT — Australian Construction Industry Redundancy Trust) throughout the employment.
How to Check You’re Being Paid Correctly
- Know your award: Check which award applies to your work on the Fair Work Ombudsman website (fairwork.gov.au)
- Check your payslip: Your employer must provide a payslip within one working day of payday, showing your hours, rate, allowances, deductions, and super
- Verify your super: Log into your super fund regularly to check that contributions are being received
- Use the Fair Work Pay Calculator: Available on the Fair Work website to calculate your minimum entitlements
- Ask your union: If you’re a member of the CFMEU, ETU, or plumbers’ union, they can check your pay and conditions
- Contact Fair Work: If you believe you’re being underpaid, you can lodge a complaint with the Fair Work Ombudsman
Perth Trades Recruitment
Perth Trades Recruitment ensures all workers placed through our agency are paid correctly, with proper award or over-award rates, superannuation, and entitlements. We’re transparent about pay rates and conditions for every placement.
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Contact Perth Trades Recruitment to find construction work in Perth with fair pay and conditions.