When employees get a tool allowance

Employees get a tool allowance when an employer makes the employee use their own tools for work.

They don’t get a tool allowance when they’re reimbursed for the cost of the tools.

Exceptions

Some employees always get the tool allowance, even if they don’t use their own tools. They include:

• junior apprentices including trainee apprentices, and
• adult apprentices being paid the same pay rates as junior apprentices.

How the tool allowance is paid

The tool allowance is $22.96 each week. How it’s paid depends on the employment type.

It’s paid as a weekly allowance for:

• weekly hire employees
• daily hire employees
• adult apprentices being paid the national minimum wage and industry allowance.

It’s included in the minimum hourly rate for all junior apprentices, trainee apprentices, and adult apprentices being paid the same rates as junior apprentices.

Trainee apprentices get paid the full tool allowance. Junior apprentices and adult apprentices being paid the same as junior apprentices get paid the apprentice percentage of the tool allowance.

The tool allowance and overtime

The tool allowance is paid as part of overtime if the tool allowance is included in an employee’s minimum hourly rate.