The offer quotes a salary package: how do I compare cash, super and extra hours?

A salary package does not override minimum legal entitlements

In Australia, an employer may quote a single salary figure that is meant to cover your base pay, superannuation, and sometimes extra hours or other entitlements. However, that headline number does not automatically satisfy the minimum requirements under the Fair Work Act, a modern award, or an enterprise agreement. The Fair Work Ombudsman distinguishes between award-based annualised wage arrangements and contractual salaries that are intended to offset certain entitlements. The rules that apply depend on the specific industrial instrument and the type of arrangement you are offered. A quoted package alone is not enough to prove that the offer is compliant. Before comparing offers, separate the cash salary, employer super contributions, and any conditional amounts such as bonuses. Do not assume that every component will appear as cash in your bank account each pay period.

Ask for an itemised breakdown of the offer

When you receive a salary package, request a written breakdown that lists the base cash pay, how superannuation will be handled (including whether the quoted figure includes the Superannuation Guarantee contribution), the ordinary hours of work, any expected additional hours, and the conditions attached to bonuses or other incentives. If you are covered by an award or enterprise agreement, ask which award and classification level applies, and which entitlements the salary is intended to absorb or offset. When comparing two job offers, use the same assumptions about working hours and the same compensation categories for both. Also consider commuting time and flexible work arrangements as part of the overall value, rather than ignoring them or treating them as having no worth.

Check how hours and shortfalls will be reviewed

Ask how your actual working hours will be recorded and when the salary will be checked against your legal entitlements. Award provisions may include specific limits on hours and requirements for reconciliation, so you should not assume that a single annual review rule applies to every salary contract. Keep a copy of the written explanation and the relevant clause from the award or agreement, so that you can later compare your payslips with the arrangement you accepted. This will help you identify whether the salary actually covers the hours you work and whether any shortfall needs to be addressed.

Resolve gaps before relying on the headline figure

If the employer cannot identify which components are included in the salary or cannot explain the legal basis for the arrangement, seek advice specific to your award or agreement before treating the package as verified. After you start work, keep a realistic record of your hours. This guide does not calculate every possible salary offset, does not promise that a bonus will be paid, and does not determine whether the entire offer is suitable based only on the headline number. You may need to ask further questions or obtain professional advice to confirm that the offer meets all legal requirements.

Hypothetical illustration: package including super versus base plus super

Imagine you receive two job offers. Offer A states a total package of $80,000, which includes the employer's super contribution, and says the salary covers all overtime. Offer B states a base salary of $75,000 plus super, and separately pays overtime at the award rate. To compare them fairly, you need to know how many extra hours you are likely to work each week. If you expect to work five hours of overtime weekly, Offer A may appear higher, but you must check whether the award allows the salary to absorb that overtime and whether all applicable pay entitlements are met for the actual hours and arrangement. Ask: 'Under the applicable award, can this salary cover overtime, and how are my actual hours and any shortfall checked?' This question helps you see which offer is more favourable in practice.

Next steps if the offer remains unclear

If you have asked for an itemised breakdown and the employer still cannot explain the components or the legal basis, you may need to seek advice from a workplace relations specialist, such as a community legal centre or a union, if you are a member. Bring the written offer, any correspondence about the salary, and the relevant award or agreement clause to the appointment. Ask the specialist: 'Does this salary arrangement comply with the award, and what records should I keep to verify my entitlements?' If you believe your rights are not being met after you start work, you can contact the Fair Work Ombudsman for assistance, but this guide does not provide legal advice or guarantee a particular outcome.

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