A higher hourly rate or annual salary doesn’t automatically mean you’re better off.
When you’re offered a veterinary job, changing employers, moving from an hourly rate to a salary, or negotiating different working arrangements, it’s worth looking at the whole employment package — not just the headline pay rate.
This guide will help you work out what to compare.
1. Start with the right benchmark
First, work out what employment instrument applies to you.
You may be covered by:
- a modern award
- an enterprise agreement
- another registered agreement
- or, in some circumstances, an employment arrangement where an award does not apply.
If an award applies, it sets minimum pay rates and conditions for employees covered by that award.
Your employment contract generally can’t simply remove those minimum entitlements.
Don’t assume that because your contract says you’re paid a salary, the award no longer matters.
You can find information about awards through the Fair Work Ombudsman.
2. Don’t compare just the hourly rate
Suppose you’re offered:
$45 per hour
That sounds straightforward.
But what matters is when you’re working and what you’re entitled to receive for those hours.
Depending on the applicable award or agreement, you may need to consider:
- ordinary hours
- overtime
- evening penalties
- Saturday penalties
- Sunday penalties
- public holiday rates
- meal/rest breaks
- minimum engagement periods
- allowances
- annual leave loading
- other award entitlements.
A higher ordinary hourly rate can sometimes compensate for some of these differences — but you need to actually do the comparison.
3. If you’re offered a salary, work out what it is really buying
An annual salary can make comparing jobs more complicated.
For example:
Job A
$100,000 salary
Job B
$90,000 salary + overtime + weekend penalties + allowances
Job A isn’t automatically better.
The question is:
What would I receive under the applicable award/agreement for the work I’m actually expected to perform, compared with what I’m receiving under the proposed arrangement?
Consider the actual hours and pattern of work you expect to perform.
A salary that looks attractive on paper may be less attractive if it requires substantial unpaid overtime or regular weekend/evening work.
4. Make a realistic comparison
Use the hours and shifts you actually expect to work.
For example, if you normally expect to work:
- 38 hours Monday–Friday
- one Saturday every fortnight
- two late evenings per week
- occasional public holidays
- regular overtime during busy periods
Use those specific hours when doing your comparison.
Compare two scenarios
Under your award or agreement:
Work out what you would receive for those unique hours, including applicable overtime, penalty rates, allowances and leave loading.
Under the proposed arrangement:
Work out what you would receive from your salary or hourly rate, plus any additional payments or benefits.
Then compare the overall value of the two arrangements.
The key question is: Am I better off overall under the proposed arrangement than I would be under my award or agreement?
Don’t assume that a higher salary automatically means you’re better off — or that receiving less in one area automatically means you’re worse off overall.nnot simply be traded away because an employee is receiving a higher salary.
5. Don’t forget non-monetary benefits
Being “better off overall” isn’t necessarily just about dollars.
Depending on the circumstances, relevant benefits may include things such as:
- predictable working hours
- guaranteed days off
- flexibility around start and finish times
- working from home where applicable
- additional leave
- professional development
- additional paid training
- other contractual benefits.
However, don’t assume that a vague promise of flexibility automatically compensates for a specific monetary entitlement.
The comparison needs to be based on the actual arrangement.
6. A particularly important question: what happens when things change?
Ask yourself:
Am I still better off if I work the amount of overtime, weekends or public holidays that I realistically expect to work?
A salary arrangement might look favourable if you work 38 hours per week but become much less favourable if you’re regularly working 45–50 hours.
Also consider whether the arrangement changes depending on:
- your roster
- overtime
- weekend work
- public holidays
- changes in your hours
- changes in your role.
Fair Work guidance specifically recommends considering situations where an employee may not be financially better off, such as particular roster cycles or periods involving overtime.
7. What about an Individual Flexibility Arrangement (IFA)?
An Individual Flexibility Arrangement (IFA) is a written agreement between an employer and an individual employee that changes how certain award or registered-agreement terms apply.
For example, an IFA may change arrangements relating to:
- when work is performed
- overtime rates
- penalty rates
- allowances
- leave loading.
There are limits on what an IFA can change.
An IFA must be genuinely agreed to by both parties and must leave the employee better off overall than they would have been without the arrangement.
An employee cannot be forced to agree to an IFA, and an employer cannot lawfully pressure an employee into agreeing to one.
8. A higher salary doesn’t automatically make everything okay
This is an important misconception.
For example, an employer might say:
“You’re paid above award, so you don’t get overtime.”
That statement on its own doesn’t establish that the arrangement is lawful or that you are better off overall.
You need to consider:
- What award or agreement applies?
- What entitlements would you receive under it?
- What does your contract actually provide?
- What hours and shifts are you actually working?
- Which award terms are being varied?
- Is there an applicable IFA or other lawful mechanism?
- Are you actually better off overall?
9. Your “Better Off Overall” checklist
Before accepting a new employment arrangement, ask:
Pay
☐ What is my base rate?
☐ How many hours am I expected to work?
☐ What happens if I work overtime?
☐ What happens when I work evenings?
☐ What happens on Saturdays?
☐ What happens on Sundays?
☐ What happens on public holidays?
☐ Are there allowances that would otherwise apply?
Leave
☐ How much annual leave do I receive?
☐ Is annual leave loading applicable?
☐ How much personal/carer’s leave do I receive?
☐ Are there any additional leave benefits?
Working arrangements
☐ What are my guaranteed hours?
☐ What are my expected hours?
☐ Can my employer change my roster?
☐ Are there minimum engagement periods?
☐ What happens if I am asked to stay late?
Other benefits
☐ Is professional development paid?
☐ Is there paid training?
☐ Are there other contractual benefits?
☐ Are promised benefits actually written into my contract?
Reality check
☐ Have I compared the arrangement using the hours I realistically expect to work?
☐ Would I still be better off during a particularly busy period?
☐ Would I still be better off if I regularly worked overtime?
☐ Have I checked which award or agreement applies?
10. If you’re unsure, get advice
This resource is designed to help you ask better questions and understand your employment package. It isn’t a substitute for individual legal advice.
If you’re unsure about your particular circumstances, you can:
- check the Fair Work Ombudsman website
- use Fair Work’s pay and conditions tools
- contact the Fair Work Ombudsman
- speak with your union or professional association
- seek independent employment-law advice.
Disclaimer: Vets Unlimited provides general information based on personal interpretation only and is not a legal or employment advice service. Employment conditions can vary depending on the relevant award, contract and individual circumstances. Laws and awards can change, so always check the current information with Fair Work Ombudsman or seek independent professional advice.
Employment arrangements can be complicated, particularly where salaries, enterprise agreements, annualised salaries, individual flexibility arrangements or above-award payments are involved.