Published by Valont’s People Hub — general information, reviewed against the official Fair Work instruments; not legal advice. See our editorial policy.
The Building and Construction General On-site Award 2020 covers employees working on construction sites. It's one of the most allowance-heavy awards in the system — tool allowance, travel, RDOs, site and weather conditions — layered on top of trade-based rates, which makes on-site payroll genuinely complex.
Who it covers
On-site employees in building and construction work
Trades and labourers across classification and skill levels
Employers running site-based crews (distinct from off-site/joinery awards)
How pay is structured
Minimum rates are set by classification and trade level, with apprentice rates that step up by year. A defining feature is the layer of allowances — tool allowance, travel and fares, site allowances — that sit on top of the base. Minimum rates under this award are reviewed by the Fair Work Commission every year and rise from the first full pay period on or after 1 July — the 2026 review lifted modern award minimum wages by 4.75%. Because the exact dollar figure changes each year, confirm the current rate for the relevant classification on the Fair Work Pay Calculator before you set pay.
Penalties & loadings
On top of the rate and allowances, the award sets overtime, weekend and public-holiday penalties, plus rostered days off (RDOs) and travel-time rules. Allowance amounts are also reviewed annually — the Fair Work source has the current figures.
Tool allowance and fares/travel are payable in defined circumstances and are indexed each year. Dropping them, or using last year's figure, is a frequent underpayment.
RDO accrual and pay
Rostered days off accrue and are paid under specific rules. Mishandling RDO accrual across projects creates leave-liability and pay errors.
Travel time between sites
Time and fares for the first and last job of the day, and travel between sites, have award rules that a flat day rate misses.
Annual 1 July increase
Both rates and allowance amounts rose at the 2026 review (modern award minimums +4.75%) from the first full pay period on or after 1 July. Allowances need re-checking too, not just hourly rates.
FAQ
Common questions about the Construction Award
Under the Building and Construction General On-site Award 2020 (MA000020), the tool allowance is a set weekly (or hourly equivalent) amount paid to eligible tradespeople who supply their own tools, paid on top of the base rate. The amount is fixed by the award and reviewed each year, typically rising from the first full pay period on or after 1 July. Don't rely on a past figure — confirm the current tool allowance for the classification on the Fair Work Pay Calculator.
On-site building and construction employees are generally covered by the Building and Construction General On-site Award 2020 (MA000020). It applies to trades and labourers performing construction work on site — carpenters, bricklayers, concreters, labourers and apprentices among them. Off-site work, like joinery shops, may fall under different awards. To confirm coverage for your workers and the work they perform, check the coverage clause of the Building and Construction General On-site Award 2020 on the Fair Work Ombudsman website.
Construction payroll is allowance-heavy and site-dependent. The Building and Construction General On-site Award 2020 layers tool allowances, travel and fares/distance payments, site and special-task allowances, rostered days off (RDOs), and apprentice rates that step up by year — on top of overtime and penalties. Getting it right means tracking where and how each worker is engaged. Valont's People Hub runs award-compliant construction payroll under MA000020, applying the allowances, RDOs and annual 1 July increases correctly.
The Building and Construction General On-site Award 2020 is allowance-heavy, including a tool allowance, travel and fares or distance allowances, a daily site allowance in defined circumstances, and special-rates allowances for dirty, confined, height or hazardous work. These are paid on top of the base rate when conditions are met. The values are reviewed and generally rise each 1 July, so don't use an old figure — confirm the current allowance amounts on the Fair Work Pay Calculator.
Minimum rates under the Building and Construction General On-site Award 2020 are set by classification level, based on trade qualifications, skill and responsibility — for example, a labourer level sits below a qualified tradesperson. Each level has a minimum rate that rises from the first full pay period on or after 1 July each year; the 2026 Annual Wage Review lifted modern award minimums by 4.75%. Confirm the current rate for the classification on the Fair Work Pay Calculator.
Under the Building and Construction General On-site Award 2020, rostered days off (RDOs) are a standard feature: employees on a 38-hour week can accrue a paid day off by working slightly longer across a cycle. The award sets how RDOs are accrued, scheduled and paid, and how they interact with public holidays and termination. Getting the accrual and payment right is a common construction payroll challenge. Check the RDO provisions of MA000020 on the Fair Work Ombudsman website.
Apprentice rates under the Building and Construction General On-site Award 2020 step up by year of the apprenticeship, expressed as a percentage of the relevant tradesperson rate, and many apprentices also receive allowances and, where applicable, training-related entitlements. This progression is set by the award. The percentages, stages and the dollar amounts change each 1 July, so always confirm the current apprentice rate and applicable allowances for the year of apprenticeship on the Fair Work Pay Calculator.
Generally yes. The Building and Construction General On-site Award 2020 provides fares and travel patterns of work allowances to compensate employees for getting to and from changing job sites, paid on top of the base rate when the conditions are met. There can also be distance and living-away arrangements for more remote sites. The exact entitlements depend on the circumstances and are reviewed each 1 July, so confirm the current amounts and rules on the Fair Work source.
The Building and Construction General On-site Award 2020 provides overtime for hours beyond the ordinary hours and penalty rates for weekend and public-holiday work. As a guide, Saturday and Sunday work and overtime carry escalating penalties, and public holidays can reach 150%, varying by classification. Overtime and penalties are separate from allowances and paid in addition. The exact percentages and thresholds are in MA000020, so confirm them for your employee on the Fair Work Pay Calculator.
Casual employees under the Building and Construction General On-site Award 2020 receive a casual loading on top of the minimum hourly rate, commonly 25%, to offset the lack of paid leave and security. This is paid in addition to applicable allowances, overtime and penalties. The percentage is a structural feature of the award, but the exact current loading for the classification should be confirmed at the Fair Work source before you process pay, as casual entitlements in construction can differ by engagement.
You can pay an above-award flat rate, but workers must be better off overall than under the Building and Construction General On-site Award 2020. The 'better off overall' test means the rate has to cover what they'd otherwise earn including allowances, overtime, penalties and RDO entitlements — which is substantial in construction. A flat rate that ignores tool, travel and site allowances often falls short. Keep reconciliation records and review at each 1 July. Check the award terms on the Fair Work Ombudsman website.
You'll generally have to back-pay the full shortfall, and the Fair Work Ombudsman can investigate, issue compliance notices and pursue penalties, with larger fines for serious or deliberate breaches. Construction underpayments frequently arise from missed allowances, mishandled RDOs or incorrect apprentice rates under the Building and Construction General On-site Award 2020 rather than intent. Accurate site and time records are the best protection, and any shortfall should be rectified and back-paid promptly once found.
Under Fair Work law, you must keep accurate time-and-wages records and issue each worker a payslip within one working day of payment, showing pay, hours, overtime, allowances, penalties and superannuation. For construction this matters because allowances, RDOs and site-based entitlements under the Building and Construction General On-site Award 2020 must be evidenced. Records generally must be kept for seven years. The detailed record-keeping and payslip requirements are set out on the Fair Work Ombudsman website.
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