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Employment Relations: Employment agreement builder

Section 7: Payment

There are a number of options available for describing how the wages or salary of an employee are set. Read through the following options and select the one most appropriate to your situation.

Note: Should the hourly rate clause be chosen, the law requires employees who are 16 years of age or older to be paid at least a minimum wage set by law. The same applies to people who are involved in recognised industry training. Information on these rates, and how they apply, is available in the New Zealand Department of Labour website.

Should the piece work or commission clauses be chosen, the piece rate (or commission rate) must be set at a level where an employee can reasonably be expected to earn at least the minimum wage.

Annual Salary
 
The employee’s salary shall be $ per annum, which shall be paid on .
Hourly Rate
 
The Employee shall be paid according to an hourly rate which shall be $ per hour. The employee’s pay shall be paid on .
Wages Paid in accordance with a performance pay process/structure
 
The parties agree that the employee’s salary shall be determined in accordance with the following scale , the Employee shall commence employment at and the employee’s progression through that scale shall be dependent upon . The employee’s pay shall be paid on .
Commission
 
The Employee shall be paid on a Commission basis, as follows . The employee’s pay shall be paid on .
Piece Work Payment Rate
 
The Employee shall be paid on a piece work basis, which shall depend on the number of completed by the Employee. The piece rate per completed unit of work shall be $. The employee’s pay shall be paid on .
Variable Piece Work Payment Rate
 
The Employee shall be paid on a piece work basis, which shall depend on the number of completed by the Employee. The piece rate per unit of work shall be $. The unit of work of the piece rate may be varied by agreement in advance between the Employer and the Employee depending on the circumstances, such as . The employee’s pay shall be paid on .
About OER | Department of Labour, May 2006. © The Crown