This enhancement ensures allowance calculations align with Modern Award requirements by correctly supporting per‑shift payments, weekly caps, and minimum payment rules. It allows multiple limit rules—such as daily, weekly, and pay‑cycle limits—to be applied simultaneously to a single pay item, while accurately handling multi‑week pay periods by applying weekly caps to each calendar week independently. Both maximum and minimum limit configurations are supported, along with flexible limit bases using either units or hours, or dollar amounts. Importantly, it also maintains backward compatibility with existing award policies through a structured migration process.
Getting Started
Prerequisites
Before you can use Minimum or Maximum Allowance Limits, your system administrator must configure the appropriate award policy rules. This feature is configured at the award policy level within the Add Pay Item action.
For System Administrators:
Access to Award Policy configuration.
Understanding of Award requirements for your organisation.
Knowledge of which pay items require minimum and maximum payment guarantees.
For Payroll Officers:
No additional permissions required.
Minimum limits are applied automatically when configured in the award policy.
Note: Minimum and multiple Maximum Allowance Limits is an optional feature that must be explicitly enabled in your award policy configuration. Existing maximum limit calculations continue to work unchanged.
The previously configured Apply Max rules have been migrated to the new look Add Limit Rule
Understanding Allowance Limits
The Business Requirement
Many Modern Awards specify allowances that must be paid per shift, but capped at a weekly maximum. This ensures employees receive fair compensation for each shift worked while preventing excessive payments when working many shifts.
Some Modern Awards require that employees receive a minimum payment for certain allowances, regardless of how little work they performed.
Example: Cleaning Services Award 2020 (MA000022) - Maximum Toilet Cleaning Allowance
Toilet cleaning allowance: The employer of an employee who is employed for the major portion of any day or shift to clean toilets must pay the employee a toilet cleaning allowance of $3.28 per shift up to $16.15 per week.
This means:
An employee working 1 shift receives $3.28
An employee working 4 shifts receives $13.12 (4 × $3.28)
An employee working 5 shifts receives $16.15 (capped at weekly maximum, not 5 × $3.28 = $16.40)
An employee working 6 shifts still receives $16.15 (weekly cap applies)
How the Calculation Works
The system calculates per-shift allowances with weekly caps using the following logic:
For each shift worked, the per-shift amount is calculated.
The total is accumulated across the applicable period (e.g., week).
If the total exceeds the maximum cap, the amount is limited to the cap.
The final payment is the lesser of (shifts × per-shift rate) OR (weekly maximum).
Step-by-step calculation example:
Shifts Worked | Per-Shift Rate | Calculated Total | Weekly Cap | Final Payment |
3 | $1.33 | $3.99 | $6.67 | $3.99 (under cap) |
5 | $1.33 | $6.65 | $6.67 | $6.65 (just under cap) |
6 | $1.33 | $7.98 | $6.67 | $6.67 (capped) |
Example: Aged Care Award 2010 (MA000018) - Minimum Nauseous Work Allowance
The award specifies:
An allowance of 0.05% of the standard rate per hour for nauseous work
A minimum of 0.27% of the standard rate for work performed in any week
Without minimum limits, an employee working only one shift might receive less than the required minimum weekly amount.
How the Calculation Works
Minimum limits ensure that the total payment for a pay item meets or exceeds a specified threshold within a defined period. If the calculated amount falls below the minimum, the system automatically tops up the payment.
Step-by-step calculation:
Calculate the pay item amount based on timesheets (e.g., per hour, per shift).
Sum all amounts for the pay item within the limit period (e.g., week).
Compare the total against the configured minimum.
If below minimum, proportionally increase all line items to reach the minimum.
If at or above minimum, no adjustment is made.
Minimum Limit Calculation Example
Scenario | Calculation | Result |
1 shift @ $0.50 | Total: $0.50, Minimum: $2.00 | Topped up to $2.00 |
5 shifts @ $0.50 | Total: $2.50, Minimum: $2.00 | No change ($2.50) |
4 hrs @ $0.10 + 8 hrs @ $0.10 | Total: $1.20, Minimum: $5.00 | Proportionally topped up to $5.00 |
Proportional Distribution
When a minimum top-up is required, the additional amount is distributed proportionally across all contributing timesheets. This ensures accurate costing by allocating the top-up based on each timesheet's contribution to the original total.
Example: Proportional Top-Up
Timesheet | Original Amount | Proportion
| Final Amount |
TS1 (4 hours) | $0.40 | 33.33% | $1.67 |
TS2 (8 hours) | $0.80 | 66.67% | $3.33 |
Total | $1.20 | 100% | $5.00 |
Configuring Add Limit Rule
Adding a Minimum Limit Rule in Award Policies
Minimum limits are configured through the Award Policy configuration using the Add Pay Item action.
Navigate to Policies > Award Policies
Select the award policy you wish to configure
Edit the relevant rule containing the Add Pay Item action
Click Add Limit Rule to add a new limit rule
Configure the limit rule settings:
Select Minimum or Maximum from the limit type dropdown.
Choose the Limit Basis (Units or Dollar Amount).
Enter the Minimum or Maximum Amount.
Set the per Period amount (Only Week, aligned to Pay Cycle is supported for Minimums).
Set the Costing Mode (Only Proportionally is supported for Minimums)
6. Save the award policy.
Important: Minimum limits currently only support the "Week, aligned to Pay Cycle" period type. This aligns with common Modern Award requirements that specify weekly minimums.
Limit Rule Configuration Options
When adding a limit rule, you can configure the following options:
Limit Type:
Maximum - Caps the pay item at the specified amount (existing functionality)
Minimum - Ensures the pay item reaches at least the specified amount (new functionality)
Limit Basis:
Units (Hours) - Limit is applied to the number of units/hours
Dollar Amount - Limit is applied to the total dollar value after rate resolution
Period Type:
Shift - Per grouped shift transaction
Day - Per shifts starting on calendar day (midnight to midnight).
Week, starting on - Per 7 day period where the start day aligns with day specified
Week, aligned to Pay Cycle - Per 7 day period where the start day aligns with the beginning day of your pay cycle/calendar
Work Schedule Period - Per work schedule period as defined in the employee's configured work
schedule or Work Schedules Policies. If no work schedule period contains the entry date, the limit has no effectPay Cycle - Per full pay cycle period as defined by the organisation's pay calendar (e.g. weekly, fortnightly, monthly). Accumulation resets at the start of each new pay cycle.
Specific Period - Limit is applied to a custom repeating period of a specified number of days, aligned to a configured date.
Costing Mode:
Proportionally - Amounts are distributed proportionally across timesheets
Chronologically - Amounts are distributed chronologically across the timesheets
Multiple Limit Rules
Per Shift and Week Caps
When the allowance is payable per shift but capped to a maximum weekly amount.
Example Configuration:
Allowance | Per-Shift Rate | Weekly Maximum |
Uniform Allowance | $1.33 | $6.67 |
Independent Weekly Caps
When pay periods span multiple weeks (e.g., fortnightly or monthly pay cycles), weekly caps are applied to each week independently. This ensures compliance with Modern Award requirements that specify weekly maximums.
Example: Fortnightly pay period with $6.67 weekly cap:
Week | Shifts | Calculated | Cap | Payment |
Week 1 | 6 shifts | $7.98 | $6.67 | $6.67 |
Week 2 | 6 shifts | $7.98 | $6.67 | $6.67 |
Total | 12 shifts | $15.96 |
| $13.34 |
The total payment is $13.34 (two weeks × $6.67 cap), not $6.67 (single cap for entire fortnight).
Example: Fortnightly pay period with $6.67 weekly cap:
Week | Shifts | Calculated | Cap | Payment |
Week 1 | 4 shifts | $5.32 | N/A | $5.32 |
Week 2 | 6 shifts | $7.98 | $6.67 | $6.67 |
Total | 10 shifts | $13.30 |
| $11.99 |
Combining Minimum and Maximum Limits
A single pay item can have both minimum and maximum limits applied. This is useful when an award specifies both a minimum guarantee and a maximum cap.
Example Configuration:
Maximum, 1 per Shift
Minimum, $20.00 per week
Maximum, $50.00 per week
The system processes maximum limits first, then applies minimum limits to ensure the final amount falls within the specified range.
Allowance | Per-Shift Rate | Weekly Minimum | Weekly Maximum |
Availability Allowance | $5.00 | $20.00 | $50.00 |
Multiple Minimum Limits
When multiple minimum limits are configured for the same pay item and period, the highest minimum takes precedence. This ensures the employee receives at least the largest required minimum amount.
Example:
Minimum Rule 1: $2.00 per week
Minimum Rule 2: $3.00 per week
Result: Employee receives at least $3.00 per week
Backward Compatibility (Apply Max only)
Existing Award Policies
Implementation of per-shift allowances with weekly caps does not affect existing award policies or calculations.
Key points:
Existing calculations continue to work unchanged.
Per-shift addition type and limit rules must be explicitly configured.
Legacy single-limit configurations are automatically migrated to the new multi-limit structure.
No existing functionality is broken by the implementation.
Migration Considerations
If you need to add minimum limits to existing policies:
Review your current award policies.
Identify which Modern Awards require minimum payment guarantees.
Add minimum limit rules to the relevant Add Pay Item actions.
Test the updated policies in a non-production environment.
Deploy the changes during a suitable pay period transition.
Important: When adding minimum limits, be aware that calculated amounts may increase for employees who previously received less than the minimum. Review and communicate any payment changes to affected employees as required.
Troubleshooting
Amounts Not Meeting Minimum
Problem: Pay item amounts are not being topped up to the minimum
Solution:
Verify that a minimum limit rule is configured in the award policy.
Check that the limit type is set to Minimum (not Maximum).
Confirm the minimum amount is correctly specified.
Ensure the period type is set to Week, aligned to Pay Cycle.
Verify the employee has timesheets within the pay period that trigger the pay item.
Minimum Limit Not Applied
Problem: The minimum limit rule appears to have no effect
Solution:
Check that the pay item is being generated by the award policy.
Verify the limit basis matches your intention (Units vs Dollar Amount).
Ensure the employee's calculated amount is actually below the minimum.
Review the award policy rule order to ensure the Add Pay Item action is being executed.
Unexpected Top-Up Distribution
Problem: The minimum top-up is not distributed as expected across timesheets
Solution:
Minimum limits use proportional costing, distributing top-ups based on each timesheet's contribution.
Verify the timesheets are within the same calendar week.
Check that all timesheets are approved and included in the pay run.
Review the costing dates to ensure they fall within the expected period.
Allowance Not Being Paid
Problem: Per-shift allowance is not appearing in pay run results
Solution:
Verify the award policy is assigned to the employee.
Check that the timesheet matches the award policy conditions (e.g., TimesheetTypeCondition).
Confirm the pay item exists and is correctly referenced in the award policy.
Review the award policy rule order - ensure the Add Pay Item action is in the correct position.
Weekly Cap Not Applied
Problem: Allowance exceeds the configured weekly maximum
Solution:
Verify the limit rule is correctly configured with the maximum amount.
Check the period type is set correctly (e.g., WeekStartingOn with correct day).
Confirm the limit type is set to "Maximum".
Review the costing mode - Chronological applies limits in order, Proportional distributes across all timesheets.
Frequently Asked Questions
Q: Does the minimum limit apply to all pay items automatically?
A: No, minimum limits must be explicitly configured in the award policy for each pay item that requires them. Only pay items with minimum limit rules will have the minimum applied.
Q: Will enabling minimum limits change my existing pay calculations?
A: Only for pay items where minimum limits are explicitly added. Existing calculations without minimum limit rules continue unchanged.
Q: How much difference does a minimum limit make to payments?
A: The difference depends on the configured minimum and the employee's actual hours. Employees working few hours may see significant increases to meet the minimum, while those exceeding the minimum see no change.
Q: Can I use minimum limits with period types other than Week Aligned to Pay Cycle?
A: Currently, minimum limits only support the "Week, aligned to Pay Cycle" period type. This aligns with common Modern Award requirements. Additional period types may be supported in future releases.
Q: What happens if I have both minimum and maximum limits on the same pay item?
A: Both limits are applied. Maximum limits are processed first, then minimum limits ensure the amount meets the minimum threshold. If the maximum is lower than the minimum, the maximum takes precedence.
Q: How are minimum top-ups distributed across multiple timesheets?
A: Top-ups are distributed proportionally based on each timesheet's contribution to the original total. A timesheet contributing 40% of the original amount receives 40% of the topped-up amount.
Q: Does the minimum limit apply per pay period or per calendar week?
A: The minimum applies per calendar week. For pay periods spanning multiple weeks (e.g., fortnightly), the minimum is applied to each week independently.
Q: Can I configure multiple minimum limits for the same pay item?
A: Yes, you can add multiple minimum limit rules. When multiple minimums apply to the same period, the highest minimum takes precedence.
Q: Does the per-shift addition type pay the full amount for each shift regardless of shift length?
A: Yes, the per-shift addition type pays the configured amount for each shift, regardless of how long the shift is. This differs from per-hour which pays based on hours worked.
Q: Can I have multiple limit rules on the same pay item?
A: Yes, you can add multiple limit rules to a single Add Pay Item action. This allows you to apply limits at different levels (e.g., daily, weekly, and pay cycle limits simultaneously).
Q: How do weekly caps work with fortnightly pay periods?
A: Weekly caps are applied to each calendar week independently. In a fortnightly pay period, the weekly cap is applied separately to each of the two weeks, not once for the entire fortnight.
Q: What's the difference between Chronological and Proportional costing?
A: Chronological costing applies limits in timesheet order (first-in-first-served), while Proportional costing distributes the capped amount proportionally across all timesheets in the period.
Getting Help
If you experience issues or have questions about Minimum Allowance Limits:
Review this guide for configuration and troubleshooting information
Contact your system administrator for award policy configuration questions
Refer to Fair Work Commission documentation for official award requirements
Check the online help within Definitiv for additional guidance
Contact support if you need assistance with configuration or calculations by raising a case online