The Banking Finance and Insurance Award covers large numbers of employees in financial institutions and other professional services. It is the catch-all pay instrument for many workers in the sector, dictating their minimum pay and conditions. As an employer, it’s crucial you follow the standards set in the Award to stay compliant with Australian Workplace Law.
About the Banking Finance and Insurance Award MA000019
The Banking Finance and Insurance Award is governed by the Fair Work Commission, which sits under the jurisdiction of the Federal Government. The Government appoints Commissioners, who then make decisions about what Award wages should be each year. Each Award covers workers in a different industry, which allows the Commission to set different pay packets for different circumstances.
The Banking Finance and Insurance Award covers a wide variety of workers that are involved in the industry. Fair Work defines these as as industries or banking, lending, investment, finance, superannuation and all forms of insurance. It includes services provided to these industries like broking, trading, debt recovery, financial consulting, valuation, data processing and other typical professional services. For a full list of coverage, look at Fair Work’s descriptions here.
Complexity of the Award System
While it may seem straightforward, the Award system can be difficult to understand. There are 180 modern Awards, and each of them contains 180-200 individual rules. It’s crucial not just to use the correct Award, but to use the correct rules, and at the correct time. This applies to the Banking Finance and Insurance Award. Add in penalties and allowances which apply in very specific circumstances, and the Award system can become a nightmare. As you can imagine, simple misunderstandings when interpreting Awards often lead to businesses underpaying their staff.
Keeping compliant with Fair Work legislation
Businesses are in a constant battle to try and stay compliant with Fair Work’s rules. In 2020 alone, workers were underpaid to the tune of about $2.4 billion dollars. Some businesses use the Fair Work Commission’s pay calculator to manually look up entitlements for each employee. However, as staff counts increase, this can become time-consuming, complex, and error-prone.
With so many rules and regulations to get around, businesses are increasingly turning to software with digital time and attendance, as well as automatic award interpretation capabilities. Tanda can process employee time and attendance, and apply the appropriate pay rate, penalty rates, allowances and higher duties, integrating straight into payroll.
Banking Finance and Insurance Award 2022 pay rates
Below are the minimum general Banking Finance and Insurance Award pay rates for 2022 for the various levels of employment. The current rule set came into effect on the 1st of July 2022.
Award rates effective July 1st 2022
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $28.34 | $51.01 | $62.34 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $22.67 | $45.34 | $56.68 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $14.16 | $25.49 | $31.16 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $11.33 | $22.66 | $28.33 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $17 | $30.60 | $37.40 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $13.60 | $27.20 | $34.00 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $19.84 | $35.71 | $43.64 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $15.87 | $31.74 | $39.68 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $22.66 | $40.79 | $49.86 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $18.13 | $36.26 | $45.33 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $25.50 | $45.90 | $56.10 |
| Level | Hourly Pay (incl Saturdays) | Sunday | Public Holidays |
| Level 1 | $20.40 | $40.80 | $51.00 |
Classifying employees under the Banking Finance and Insurance Award
One of the biggest reasons employers underpay staff is because they have been incorrectly classified. The rates and entitlements of the Banking Finance and Insurance Award vary dramatically depending on what classification an employee is. Fair Work provides a complete guide on classifying staff. But, for a basic outline, see below:
FULL-TIME EMPLOYEES
- On average works 38 hours each week.
- Can be a permanent employee or on a fixed-term contract.
PART-TIME EMPLOYEES
- On average work less than 38 hours per week.
- Commonly work regular hours each week.
- Can be a permanent employee or on a fixed-term contract.
CASUAL EMPLOYEES
- Are employed with the understanding that there is no firm advance commitment to ongoing work with an agreed pattern of work.
Casual conversion
Australian Law gives casuals the right to bercome permanent employees when they have been working with the same firm for at least a year, and had consistent shifts for more than six months. Permanent employees are entitled to benefits like annual leave and sick leave, which you’ll need to take into account. For more information on casual conversion see Tanda’s complete guide on the topic.
The Banking Finance and Insurance Award includes casual conversion and you’ll need to take this into account when rostering employees. If casuals are eligible to become permanent it also grants them additional entitlements such as annual leave and sick leave.
Penalties and allowances
The Banking Finance and Insurance Award includes penalties and allowances. These are additional payments for employees that work at unsociable hours or in other conditions. Typical penalties include things like penalty rates for working on a Sunday. Common allowances are for performing cost-incurring tasks on the job, like driving, or buying a uniform. Interpretations of allowances can be complicated and you should take care when looking into a workers eligibility.
Leave entitlements
As with all employed workers in Australia, employees are eligible for various leave entitlement. These are set out in the National Employment Standards (NES). The amount of leave is set out by the classification of the employee. Typically, casuals don’t receive annual leave entitlements, whereas part time and full time employees do.
FULL-TIME EMPLOYEES
- Are entitled to paid leave including annual leave and sick & carer’s leave.
PART-TIME EMPLOYEES
- Are entitled to paid leave including annual leave and sick & carer’s leave.
CASUAL EMPLOYEES
- Are not entitled to paid leave including annual leave and sick & carer’s leave
