Electrical Award Rates 2026–27: $29.45–$37.24/hr by Grade
If you’re employing electricians or apprentices in your solar or electrical installation business, getting the pay rates right is not optional. Underpaying staff — even accidentally — creates significant legal and financial exposure, and the Fair Work Ombudsman has been actively auditing the trades sector in 2025 and 2026.
The award that covers most electricians working in installation and maintenance roles in Australia is the Electrical, Electronic and Communications Contracting Award 2020 (MA000025). This award sets minimum pay rates, allowances, overtime rules, and conditions for electricians, electronic tradespeople, and their apprentices.
This guide covers the current rates, the classification structure, key allowances, and what you need to know about employing electricians in a solar or electrical business in 2026.
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⚡ Interactive Award Rates Calculator
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Rates effective from first full pay period on or after 1 July 2026.
This calculator provides estimates based on the Electrical Award (MA000025). Always verify current rates on the Fair Work Commission website. Does not include workers compensation, payroll tax, or leave loading.
Important Disclaimer
Award rates are updated annually by the Fair Work Commission. The rates in this guide reflect the July 2026 determination (effective from the first full pay period on or after 1 July 2026). Always verify current rates on the Fair Work Commission website or via your industry association before setting pay — rates change annually and this guide may not reflect the most recent determination.
The Electrical Award Classification Structure
The Electrical Award classifies workers across 10 grades (Electrical worker grade 1 to 10). The key classifications relevant to solar and electrical installation businesses are Grade 5 (entry-level tradesperson) through Grade 10 (senior/specialist). This guide uses simplified ET (Electrical Tradesperson) labels 1–5, mapped to the award’s grades 5–9.
Electrical Tradesperson — Grade 1 to Grade 5
Electrical Tradesperson Grade 1 (ET1 / Award Grade 5): A licensed electrical tradesperson working under general supervision — $29.45/hr ($1,119.10/wk). This is the entry-level tradesperson classification for most qualified electricians in installation roles.
Electrical Tradesperson Grade 2 (ET2 / Award Grade 6): A licensed electrical tradesperson with additional training or experience — $30.38/hr ($1,154.30/wk). Typically working with some independence in complex installations.
Electrical Tradesperson Grade 3 (ET3 / Award Grade 7): An electrical tradesperson with further experience and/or specific technical skills — $32.13/hr ($1,221.10/wk). Working with significant autonomy.
Electrical Tradesperson Grade 4 (ET4 / Award Grade 8): An experienced tradesperson — $33.77/hr ($1,283.10/wk). Capable of complex, non-standard electrical work with limited supervision.
Electrical Tradesperson Grade 5 (ET5 / Award Grade 9): Senior tradesperson — $34.46/hr ($1,309.50/wk). Also responsible for supervising, planning, and coordinating the work of others.
Weekly Pay Rates (2026-27, 38-hour week)
| Classification | Weekly Rate (2026-27) | Hourly Rate |
|---|---|---|
| ET Grade 1 (Award Grade 5) | $1,119 | $29.45 |
| ET Grade 2 (Award Grade 6) | $1,154 | $30.38 |
| ET Grade 3 (Award Grade 7) | $1,221 | $32.13 |
| ET Grade 4 (Award Grade 8) | $1,283 | $33.77 |
| ET Grade 5 (Award Grade 9) | $1,309 | $34.46 |
Note: These are minimum base award rates (clause 16.2). The all-purpose rate — used for calculating overtime, penalties, and leave — also includes the industry allowance and, where applicable, tool allowance and electrician’s licence allowance. Verify with Fair Work Commission for the current determination.
Apprentice Pay Rates
Apprentices who started on or after 1 January 2014 are paid as a percentage of the Electrical Worker Grade 5 minimum rate:
| Year of Apprenticeship | % of Grade 5 Rate | Approximate Weekly Rate (2026-27) |
|---|---|---|
| 1st year | 50% | ~$560 |
| 2nd year | 60% | ~$671 |
| 3rd year | 70% | ~$783 |
| 4th year | 82% | ~$918 |
Apprentice rates shown are the minimum wage component only. Apprentices also receive the full tool allowance ($22.31/wk) and proportional industry and licence allowances. Check the award for school-based and mature-age apprentice provisions.
Key Allowances
Allowances are mandatory additional payments on top of the base rate when certain conditions apply. The Electrical Award includes numerous allowances. The most commonly applicable for solar and electrical installation businesses:
Industry Allowance
A general industry allowance applies to all employees covered by the Electrical Award: $41.41 per week ($1.09/hr). This is paid to all electrical tradespeople for on-site work disabilities (climatic conditions, dust, scaffolding, etc.). It is an all-purpose allowance, meaning it’s included when calculating overtime and leave payments.
Tool Allowance
An allowance for the supply and maintenance of tools: $22.31 per week for tradespeople at Grade 5 and above who supply their own tools. If the employer supplies tools, the tool allowance doesn’t apply. This is an all-purpose allowance.
Electrician’s Licence Allowance
An electrical mechanic who holds and may be required to use an unrestricted licence: $40.29 per week ($1.06/hr). This is an all-purpose allowance.
Height / Towers Allowance
Where an employee is working on a chimney stack, spire, tower, or similar structure exceeding 15 metres:
- Over 15m: $0.94 per hour
- Each additional 15m: $0.94 per hour
For solar installation work on standard residential rooftops (below 15m), this allowance generally does not apply.
Multistorey Allowance
For employees on a multistorey building site (5+ storeys):
- 0–15 floors: $0.77 per hour
- 16–30 floors: $0.94 per hour
- 31–45 floors: $1.44 per hour
- 46–60 floors: $1.83 per hour
- Over 60 floors: $2.33 per hour
First Aid Allowance
Where an employee holds a recognised first aid qualification and is appointed by the employer to perform first aid duty: $23.50 per week.
Meal Allowance (Overtime)
An employee required to work overtime for 2+ hours without prior notice: $20.60 per meal for the first and each subsequent meal.
Overtime Rates
Overtime applies when an employee works outside their ordinary hours (generally 38 hours per week, or as specified in their agreement).
Monday to Saturday overtime (non-shiftworkers):
- First 2 hours: time and a half (1.5x)
- After 2 hours: double time (2x)
Sunday: Double time (2x) for all hours
Public holidays: Double time and a half (2.5x) for all hours worked
Note: For shiftworkers the overtime structure differs — see clause 20 of the award.
For a solar installation business doing peak-season work with long days, overtime costs can add substantially to labour costs. Factor this into your pricing model — see our solar installation pricing guide for a full cost model.
Superannuation
The current superannuation guarantee rate is 12% of ordinary time earnings. From 1 July 2025, the rate increased to 12% — check for any further scheduled increases.
Super is calculated on ordinary time earnings (base rate plus all-purpose allowances, but not overtime for most employees). It’s a significant cost component that must be factored into your total employment cost calculations.
Apprentice Supervision Requirements
When you hire an apprentice, you take on supervision obligations:
- Apprentices must be supervised by a licensed electrical tradesperson at all times during live electrical work
- The supervision requirement varies by apprentice year and the complexity of the work — check your state’s apprenticeship authority requirements (e.g., ESV in Victoria, SafeWork NSW)
- Training and Assessment (TAE) obligations apply — your apprentice must be attending formal training and you must support their training obligations
Modern Awards vs Enterprise Agreements
The Electrical Award sets minimum conditions. If you have an enterprise agreement with your employees, the agreement applies instead of the award — but it must pass the Better Off Overall Test (BOOT) against the award. Employees cannot be worse off under an enterprise agreement than they would be under the award.
If you’re considering a Greenfields Agreement or a single-enterprise agreement, consult a workplace relations professional. Getting enterprise agreements wrong creates significant back-pay liability.
The Real Cost of Employing an Electrician in 2026
Adding up all the mandatory components for a Grade 2 electrical tradesperson (Award Grade 6, a typical solar installation employee):
| Component | Annual Cost |
|---|---|
| Base wage (ET Grade 2, 38 hrs/wk) | ~$60,000 |
| Industry allowance ($41.41/wk) | ~$2,153 |
| Tool allowance ($22.31/wk) | ~$1,160 |
| Superannuation (12%) | ~$7,298 |
| Workers compensation (electrical, ~$5/hr) | ~$9,880 |
| Annual leave loading | ~$2,000 |
| Payroll tax (if over state threshold — VIC $900k, NSW $1.2m) | Varies |
| Total annual employment cost | ~$82,000–$89,000 |
At 1,820 billable hours per year (38 hrs/wk at 95% utilisation), that’s $45–$49 per billable hour minimum cost before overhead allocation and margin.
This is why pricing discipline matters. Every solar job that doesn’t fully recover labour at this rate is unprofitable — even if it looks like you charged a reasonable price.
For building the full pricing model, see our hidden costs guide and solar installation pricing guide.
Award Pay Calculator
Use the calculator below to work out the exact minimum pay for an electrical employee, including overtime and allowances. Enter their classification, hours, and applicable allowances — the total updates live.
These are minimum award rates for the Electrical, Electronic and Communications Contracting Award 2020 (MA000025). Always verify current rates with the Fair Work Commission — rates change annually on 1 July.
Staying Compliant With Fair Work Obligations
- Record-keeping: You must keep employment records for 7 years. Records must include hours worked, rates paid, leave taken, super paid. Using a payroll system (Xero Payroll, MYOB, QuickBooks) helps ensure records are complete and compliant.
- Pay slips: Every pay period, employees must receive an itemised pay slip showing hours worked, rate paid, allowances paid, and super contributions.
- Fair Work Act compliance: Familiarise yourself with the National Employment Standards (NES) — the minimum entitlements that apply to all national system employers regardless of award.
Setting Up Payroll Correctly in Xero
If you’re using Xero Payroll, the Electrical Award allowances don’t calculate automatically — they must be set up as custom pay items. This includes the industry allowance, tool allowance, height allowance, and multistorey allowance. See our step-by-step guide to setting up Electrical Award allowances in Xero Payroll for the complete setup process.
Key steps:
- Create separate pay items for each allowance type with correct PAYG and super treatment
- Build pay templates for each employee grade
- Capture allowance triggers (height hours, multistorey hours) via your job management system
- Update rates on 1 July each year following the Fair Work Annual Wage Review
*This article provides general information only and does not constitute legal or workplace relations advice. Award rates are updated annually — always verify current rates on the Fair Work Commission website at fairwork.gov.au. Next review: July 2027. *
FAQ
Which award covers electricians working on solar installations?
Most electricians working on residential and commercial solar installation in Australia are covered by the Electrical, Electronic and Communications Contracting Award 2020 (MA000025). However, electricians working on large construction sites may fall under the Building and Construction General On-site Award depending on the nature of the project. If your electricians work in both contexts, take advice on which award applies to each work arrangement — the consequences of applying the wrong award can be significant.
Can I pay my electricians a flat salary instead of the Award hourly rate?
Yes — you can employ electricians on a salary provided the total salary, when broken down, exceeds the Award minimum including all applicable allowances for a standard week’s work. This is called an “annualised salary arrangement.” The Fair Work Act requires you to document the arrangement, specify what Award entitlements the salary is intended to cover, and reconcile annually to confirm the salary covers all Award obligations. If the reconciliation shows the salary was insufficient, you must pay the shortfall.
What’s the difference between an apprentice and a tradie assistant for payroll purposes?
An apprentice is employed under a formal training contract with a registered training organisation (RTO) and paid at the Award apprentice rates by year of training. A trades assistant (or “labourer”) who isn’t in a formal training contract is paid under a different classification — typically at a lower base rate than a tradesperson, but not at the apprentice percentage rates. The classification matters for both pay rate and tax treatment. Misclassifying an employee creates underpayment risk.
How often do Fair Work Ombudsman audits happen in the electrical contracting sector?
The FWO conducts targeted audits by industry sector and has run specific campaigns in the construction and trades sector in 2024–2025. Audits are also triggered by employee complaints, which the FWO treats as confidential. Small businesses — particularly those in growth phases hiring multiple tradespeople — are a common audit target because underpayment risk is highest when payroll systems are informal or growing quickly. Running proper payroll software and conducting your own annual audit against Award rates is the best protection.
Does my apprentice need a separate employment contract?
Yes. Apprentices must have a formal training contract (apprenticeship agreement) registered with the relevant state apprenticeship authority. This is separate from the standard employment contract. The training contract specifies the training organisation, the qualification being worked toward, and the training obligations of both parties. Without a registered training contract, the person may not legally qualify as an apprentice for payroll purposes and wage subsidy eligibility.
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