Invoice template for salary: what Australian workers and contractors need to know
Understand the difference between a pay slip and an invoice template for salary. Learn what Fair Work requires on pay slips and how your pay compares on the Australian salary index
An invoice template for salary is not a standard document for employees; instead, employees receive pay slips. The salary index compares gross annual pay to the national line of $108,352 (index 100).
What is an 'invoice template for salary'?
If you search for an 'invoice template for salary' in Australia, you might be looking for a way to document your pay. But the term mixes two different concepts. Employees receive pay slips, not invoices. Contractors and freelancers issue invoices for the services they provide. The Fair Work Ombudsman sets strict rules for pay slips, while the Australian Taxation Office (ATO) governs invoicing for GST and business income.
This guide explains what a pay slip must contain, how it relates to your salary index, and what to consider if you're a contractor needing an invoice template.
Pay slips: the employee's record of pay
Under the Fair Work Act 2009, every employee must receive a pay slip within one working day of pay day. The pay slip can be electronic or paper, but it must be in an easily printable format and accessible privately. Fair Work Ombudsman lists the required information:
- Employer’s and employee’s name
- Employer’s Australian Business Number (if applicable)
- Pay period and date of payment
- Gross and net pay
- If paid by the hour: the ordinary hourly rate, hours worked at that rate, total dollar amount, and any loadings, allowances, bonuses, penalty rates
- Any deductions (amount and where they go)
- Superannuation contributions (amount and fund name or number)
Pay slips must be in plain English and simple to understand. They are not invoices – they are a record of wages paid, not a request for payment.
How your pay slip connects to the salary index
The Salary Index measures where your gross annual pay sits against the national line of $108,352 (index 100). Your pay slip shows your gross pay for the period. To find your index:
- Multiply your weekly gross by 52 (or fortnightly by 26) to get annual gross.
- Divide by 108,352 and multiply by 100.
Example: If your pay slip shows a weekly gross of $1,500, your annualised pay is $78,000. Index = 78,000 / 108,352 × 100 ≈ 72.0. That’s below the national average but above the national minimum wage (index 48.2).
Award rates also affect your index. From 1 July 2026, the national minimum wage is $26.44 per hour ($1,004.90 per week, annualised $52,255). Many awards pay more. For instance, the pay guides from Fair Work list minimum rates for each classification. The Health Services Award and SCHADS Award have recent changes that increase minimum pay.
Using a pay slip to check your entitlements
Your pay slip should reflect all entitlements under your award or agreement. If you see missing items – like penalty rates, casual loading, or superannuation – you may be underpaid. Fair Work Inspectors can issue fines for incorrect or missing pay slips.
To verify your pay:
- Check your award classification using the pay guides.
- Use the Fair Work Pay Calculator to work out minimum rates.
- Compare your pay slip’s gross pay and hourly rate to the award.
Example: A casual retail employee aged 21+ should receive at least $33.05 per hour (including casual loading). If their pay slip shows $30 per hour, that’s below the minimum. The salary index for $30/hr full-time would be about 57.6 – well below the national line.
For contractors: invoice templates for salary
If you’re a contractor, you don’t get a pay slip. You issue an invoice for your services. An invoice template for salary might include:
- Your ABN
- Client details
- Description of work (e.g., 'consulting services – 40 hours')
- Hourly rate or fixed fee
- Total amount
- GST (if registered)
- Payment terms
While Fair Work doesn’t regulate contractor invoices, the ATO requires invoices over $82.50 (including GST) to show an ABN. Contractors should also keep records of hours and payments for tax purposes.
Your salary index as a contractor is based on your gross business income after expenses. If you invoice $120,000 per year, your index is 110.8 – above the national line. But remember, contractors pay their own super and leave.
State and industry differences
The salary index varies by state and industry. For example:
- Western Australia has an index of 106.9 (annualised $115,825) due to mining.
- Tasmania is 88.6 ($96,008).
- Mining industry index is 154.7; Retail trade is 75.9.
Your pay slip should reflect the award that applies to your state and industry. If you work in a state with a higher average, your pay might still be below the state index if you’re in a low-paying sector.
Key takeaways
- An 'invoice template for salary' is not a standard document for employees. Use a pay slip instead.
- Pay slips must include specific details under Fair Work law.
- Your salary index helps you compare your pay to the national average.
- Check your pay slip against award rates using how the index works and pay guides.
- Contractors can use invoice templates, but they are not covered by Fair Work pay slip rules.
For more on pay rates and awards, visit the Fair Work Ombudsman pay guides page. To calculate your salary index, use the Salary Index.
Questions people ask
What is an invoice template for salary?
In Australia, employees do not use invoices for salary; they receive pay slips from their employer. The term 'invoice template for salary' is more relevant to independent contractors or freelancers who invoice for their services. A contractor’s invoice should include their ABN, description of work, amount, and GST if applicable. For employees, the equivalent document is a pay slip, which must comply with Fair Work regulations.
What information must a pay slip include?
Under the Fair Work Act, a pay slip must show: employer and employee names, employer’s ABN (if applicable), pay period, date of payment, gross and net pay, hourly rate and hours worked (if paid by the hour), any loadings, allowances, bonuses, penalty rates, deductions (with details), and superannuation contributions (amount and fund name or number). Pay slips must be given within one working day of pay day.
How do I calculate my salary index from my pay slip?
Take your gross annual pay (from your pay slip, multiply weekly or fortnightly gross by 52 or 26) and divide by the national line of $108,352 (full-time adult ordinary-time earnings as of May 2026). Multiply by 100 to get your index. For example, a gross annual salary of $80,000 gives an index of 73.8. The index helps you see where your pay sits compared to the national average.