The Award That Most MSP Workers Don't Know Exists
If you work in IT for an Australian MSP, your minimum wages and conditions are almost certainly set by the Professional Employees Award 2020 (MA000065).
It's the award that covers employees in the information technology industry — which includes computer system design, software development, IT consulting, managed services, and related services.
Many MSP workers have never heard of it. Many MSP owners hope you never do.
Does This Award Cover You?
The Professional Employees Award covers:
- Employers principally engaged in the information technology industry
- Their employees who are covered by the classifications in Schedule A of the award
The "information technology industry" includes: - Computer system design and related services - IT consulting services - Managed services (this means most MSPs) - Software development and publishing - Telecommunications services - Data processing and web hosting - Computer maintenance and repair
Who Is Excluded?
- Managers who truly meet the managerial exclusion (genuine management of a business unit with hiring/firing authority — not just "service desk manager" as a title)
- Senior executives earning above the high-income threshold ($175,000+ as of 2026)
- Some independent contractors (though many are misclassified — see Sham Contracting
- Clerical employees doing purely administrative work (covered by the Clerks Award instead)
If you're an IT professional working at an MSP and your salary is under ~$175,000, chances are very high you're covered by this award.
Classification Levels: What You Should Be Paid
The award has five classification levels for IT professionals. Here's what each level means:
Level 1 — Entry Level (~$1,078/week)
- Minimal experience or just starting in IT
- Works under close supervision and direction
- Tasks are routine and clearly defined
- Limited decision-making responsibility
- Examples: L1 helpdesk trainee, junior IT support
Level 2 — Intermediate (~$1,225/week)
- Some experience and developing skills
- Works under general supervision but with some autonomy
- Applies established procedures to routine problems
- Examples: L1 helpdesk (experienced), junior network technician, desktop support
Level 3 — Experienced Professional (~$1,400/week)
- Sound knowledge in their area
- Works under general direction with significant autonomy
- Exercises independent judgment in solving problems
- May supervise or mentor junior staff
- Examples: L2 engineer, systems administrator, network engineer (mid-level)
Level 4 — Senior Professional (~$1,600/week)
- Highly developed knowledge and skills
- Broad autonomy with minimal direction
- Responsible for complex problem-solving and design
- May manage projects or significant technical areas
- Examples: Senior engineer, solutions architect, technical lead, project manager (technical)
Level 5 — Lead Professional (~$1,800+/week)
- Advanced knowledge including strategic understanding
- Self-directed with responsibility for outcomes
- Provides technical leadership and strategic advice
- May manage teams or significant client relationships
- Examples: Principal engineer, practice lead, senior architect, technical director
Note: The figures above are approximate minimum weekly rates under the award. Exact rates change annually (typically July 1). The rates above reflect the award as of mid-2025. Check the Fair Work Ombudsman website for current rates.
The "Annual Salary Arrangement" Trap
Most MSPs pay an annual salary rather than an hourly wage. This is legal — but only if your salary covers all award entitlements.
How It Works
Your contract might say: "Your annual salary of $85,000 includes all award entitlements including overtime, penalty rates, and allowances."
This is called an annual salary arrangement (ASA) or loaded rate. It's valid if:
- The salary genuinely compensates for all award entitlements
- The salary is above the award minimum (including all penalties and overtime you actually work)
- The arrangement is documented in your contract
The Problem
Many MSP workers on $70,000-90,000 are working 45-55 hour weeks with regular on-call and after-hours work. When you calculate what the award actually requires:
| Component | Value |
|---|---|
| Award minimum (Level 3) | ~$72,800 |
| Overtime (5 hrs/week @ 1.5x) | ~$14,000 |
| On-call allowance | ~$3,000-5,000 |
| Weekend work | Variable |
| Total genuine entitlement | ~$90,000-100,000+ |
If you're being paid $80,000 but working 50-hour weeks with on-call, you're being underpaid. The "annual salary arrangement" doesn't protect the employer if the salary isn't high enough to cover actual entitlements.
Overtime, Penalties, and Allowances
Overtime
The award requires:
- Time and a half for the first 3 hours overtime
- Double time after that
- Double time for Sunday work
- 2.5x for public holidays
Shift Penalties
- Afternoon shift (12 PM - 8 PM): 15% loading
- Night shift (8 PM - 6 AM): 30% loading
- Rotating shifts: Additional allowances
On-Call Allowance
If your MSP requires you to be available after hours, you're entitled to an on-call allowance. The amount depends on the level of availability required.
Travel Allowances
If you're travelling between client sites and your MSP doesn't provide a company vehicle, you may be entitled to travel allowances or reimbursement.
Common Award Violations in MSPs
1. "Your salary covers everything" (but the salary is too low)
This is the most common violation. The annual salary arrangement only works if the salary genuinely covers all award entitlements. If you're doing regular overtime, on-call, or weekend work, your salary needs to be high enough to cover those entitlements.
What to check: Divide your annual salary by your actual hours worked. If it's less than the award hourly rate plus loadings, you're being underpaid.
2. Wrong classification level
Some MSPs classify experienced engineers as Level 1 or 2 to pay less. The classification should reflect your actual duties, not whatever pays the MSP the least.
What to check: Compare your actual duties against the classification descriptions above. If you're doing Level 3 work but being paid at Level 1, that's an underpayment.
3. No overtime for scheduled after-hours work
If you're rostered for maintenance windows or on-call, that time must be counted. Some MSPs try to claim after-hours work is "built into your salary" while also requiring excessive hours.
4. Unpaid travel time
Travel between client sites during the work day is work time. Some MSPs don't pay for travel between sites.
What to Do If You Think You're Underpaid
Step 1: Calculate What You Should Be Getting
Use the award rates (check Fair Work Ombudsman for current rates) and calculate what you should be paid based on: - Your actual classification level - Your actual hours worked - Any overtime, penalties, on-call - Any allowances
Step 2: Compare to Your Actual Pay
If there's a gap, calculate the underpayment amount.
Step 3: Check Your Contract
Does it reference the Professional Employees Award? Does it have an annual salary arrangement clause?
Step 4: Raise It
Some MSPs genuinely don't realise they're underpaying. A polite but informed conversation can sometimes resolve it.
Step 5: Fair Work Ombudsman
If your MSP won't fix it, contact the FWO on 13 13 94. They can investigate and recover unpaid wages.
Step 6: Legal Advice
If the amounts are significant, an employment lawyer can advise on your options.
Key Takeaways
- The Professional Employees Award covers most MSP workers in Australia
- There are 5 classification levels — make sure you're classified correctly
- Annual salary arrangements are common but often underpay — especially for high-hours MSP roles
- Overtime, on-call, and penalties add up fast — if your salary doesn't cover them, you're being underpaid
- The award is enforceable — you can recover underpayments going back up to 6 years
This article provides general information about the Professional Employees Award 2020 (MA000065) as at June 2026. Award rates and conditions change annually. Check the Fair Work Ombudsman website for current rates. This does not constitute legal advice.
Related: Fair Work and MSPs | Wage Theft in IT | Sham Contracting in IT | MSP Salary Guide 2026 | Salary Calculator
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