Electrical Contractor Award Rates Australia 2026: What You Must Pay Your Electrician
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.
Important Disclaimer
Award rates are updated annually by the Fair Work Commission. The rates in this guide reflect the July 2025 determination (effective from the first full pay period on or after 1 July 2025). 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 several grades. The key classifications relevant to solar and electrical installation businesses:
Electrical Tradesperson — Grade 1 to Grade 5
Electrical Tradesperson Grade 1 (ET1): A licensed electrical tradesperson without further trade experience or who has only recently completed their apprenticeship.
Electrical Tradesperson Grade 2 (ET2): A licensed electrical tradesperson with additional training or experience — typically working with some independence in complex installations.
Electrical Tradesperson Grade 3 (ET3): An electrical tradesperson with further experience and/or specific technical skills, working with significant autonomy.
Electrical Tradesperson Grade 4 (ET4): An experienced tradesperson capable of complex, non-standard electrical work with limited supervision.
Electrical Tradesperson Grade 5 (ET5): Senior tradesperson — also responsible for supervising, planning, and coordinating the work of others.
Weekly Pay Rates (2025-26, 38-hour week)
| Classification | Weekly Rate (2025-26) | Hourly Rate |
|---|---|---|
| ET Grade 1 | $1,460.50 | $38.43 |
| ET Grade 2 | $1,495.60 | $39.36 |
| ET Grade 3 | $1,529.80 | $40.26 |
| ET Grade 4 | $1,565.40 | $41.20 |
| ET Grade 5 | $1,601.60 | $42.15 |
Note: These are minimum award rates. Verify with Fair Work Commission for the current determination.
Apprentice Pay Rates
Apprentices are paid as a percentage of the ET Grade 1 rate, based on their year of apprenticeship:
| Year of Apprenticeship | % of ET Grade 1 | Approximate Weekly Rate (2025-26) |
|---|---|---|
| 1st year | 42% | ~$613 |
| 2nd year | 55% | ~$803 |
| 3rd year | 75% | ~$1,095 |
| 4th year | 88% | ~$1,285 |
School-based apprentices and mature-age apprentices may have different rate structures — check the award for the specific 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: $2.74 per hour (or $104.12 per week). This is paid to all electrical tradespeople, not just when specific conditions apply — it’s part of the effective hourly cost for every employee.
Tool Allowance
An allowance for the supply and maintenance of tools: $26.56 per week for a licensed tradesperson who supplies their own tools. If the employer supplies tools, the tool allowance doesn’t apply.
Boilermaker’s Licence Allowance (where applicable)
For employees holding a boilermaker’s licence and working within that licence — $2.09 per hour.
Height Allowance
Where an employee is working at heights that trigger a height allowance:
- Over 7.6m but not exceeding 15.25m: $0.57 per hour
- Over 15.25m: $0.76 per hour
For solar installation work on rooftops below 7.6m (most residential installations), the height allowance generally doesn’t apply. For some commercial work, it may.
Confined Space Allowance
$3.69 per hour where an employee is required to work in a confined space as defined by the award.
First Aid Allowance
Where an employee holds a recognised first aid qualification and is required to perform first aid duties: $14.60 per week (full first aid), $11.39 per week (basic emergency life support).
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:
- First 3 hours: time and a half (1.5x)
- After 3 hours: double time (2x)
Sunday: Double time (2x) for all hours
Public holidays: Double time and a half (2.5x) for all hours worked
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 11.5% of ordinary time earnings. From 1 July 2025, this rate applies — check for any further scheduled increases.
Super is calculated on ordinary time earnings (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 (a typical solar installation employee):
| Component | Annual Cost |
|---|---|
| Base wage (ET Grade 2, 38 hrs/wk) | ~$77,800 |
| Industry allowance ($104.12/wk) | ~$5,415 |
| Tool allowance ($26.56/wk) | ~$1,382 |
| Superannuation (11.5%) | ~$9,727 |
| Workers compensation (electrical, ~$5/hr) | ~$9,880 |
| Annual leave loading | ~$2,300 |
| Payroll tax (if over state threshold — VIC $900k, NSW $1.2m) | Varies |
| Total annual employment cost | ~$106,500–$115,000 |
At 1,820 billable hours per year (38 hrs/wk at 95% utilisation), that’s $58–$63 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.
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.
Related Reading
- Scaling a Solar and Electrical Business: Hiring, Systems and Growth
- 5 Hidden Costs Killing Your Profit as a Solar Installer or Electrician
- How to Price Solar Installations in Australia 2026
- The Paperless Trade Roadmap: Building Admin Systems That Scale
- ServiceM8 for Electricians: The Job Management Platform Australian Sparkies Actually Use
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.
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