Apprentice Pay Rates Under MA000020 for Residential Construction

What it is

The Building and Construction General On-site Award 2020 (MA000020) sets minimum pay for apprentices working on residential building projects across Australia. Apprentices are paid a percentage of the qualified tradesperson Level CW/ECW 3 rate, with the percentage rising each year of the indenture. Rates change from the first full pay period on or after 1 July each year following the Fair Work Commission Annual Wage Review.

This entry covers the four standard apprentice years, the adult apprentice loading, school-based apprentices, and trainees, plus the allowances that ride on top of the base.

The four-year progression

A standard four-year carpentry, bricklaying, plumbing or other building trade apprenticeship under MA000020 pays the following percentages of the Level CW/ECW 3 weekly rate. These percentages assume the apprentice has completed Year 10 or equivalent. Different ratios apply where the apprentice has not finished Year 10.

Year 1

55 per cent of the trade rate (50 per cent if Year 10 not completed). This applies for the first 12 months of the apprenticeship.

Year 2

65 per cent of the trade rate (60 per cent if Year 10 not completed).

Year 3

75 per cent of the trade rate.

Year 4

88 per cent of the trade rate. The final-year percentage is set so the apprentice approaches but does not match the full tradesperson rate.

These percentages are paid as a weekly wage based on a 38-hour week. The hourly rate is the weekly rate divided by 38, with overtime calculated on the apprentice rate rather than the trade rate.

Adult apprentices

An adult apprentice is someone aged 21 or older when their training contract starts. Under MA000020, an adult apprentice is paid the higher of the relevant year-of-apprenticeship percentage or the lowest applicable adult apprentice minimum. Some employers pay above the floor to retain experienced career changers, which the award allows.

School-based apprentices

A school-based apprentice combines paid work, off-the-job training and school. Pay is calculated using the relevant year-of-apprenticeship percentage, then applied only to the hours actually worked plus a loading of 25 per cent of those hours that reflects the time spent in training. The total assumed hours sit lower than a full-time apprentice because of school commitments.

Allowances on top of the base

Apprentices in residential construction receive the same site allowances as qualified tradespeople, paid in full rather than at the apprentice percentage. These include the industry allowance, the tool allowance (paid at the apprentice percentage), the daily fares and travel pattern allowance, and any special allowances such as wet work, height work or confined space work where the conditions apply.

Training fees, costs of prescribed textbooks and travel to attend block training are reimbursable under the award. Employers must pay the apprentice their ordinary wage for time spent at training.

Superannuation and entitlements

Apprentices are employees for all purposes. The Superannuation Guarantee applies at 12 per cent of ordinary time earnings, paid quarterly to the apprentice nominated fund. Apprentices accrue annual leave, personal leave, long service leave and public holiday entitlements on the same basis as a full-time employee. Workers compensation cover is mandatory.

Some states run apprenticeship incentive payments to employers, which sit outside the award but do not reduce the wage owed to the apprentice.

Where builders get it wrong

The most frequent payroll error in residential builds is locking an apprentice to a flat hourly figure for the whole year. Rates change on the apprentice anniversary, again on 1 July when the award lifts, and again if the apprentice moves between years mid-year. Each step needs a payroll update. The second common error is paying allowances at the apprentice percentage. Site allowances are paid at the full adult rate to apprentices, not scaled down.

Audit trail matters. Keep the signed training contract, the AASN registration, year-of-apprenticeship records and pay slips that name the apprentice level and the percentage applied. Fair Work inspectors and the relevant state training authority can request these.