The Fair Work Commission has approved discount department store Big W’s new enterprise agreement, which will cover approximately 16,000 staff members across Australia.

Big W’s previous enterprise agreement was created in 2012, and expired in 2015.

The new agreement includes above-award wages and conditions with wage increases each year, penalty rates, increased casual loading, choice of superannuation providers and increased entitlements to redundancy payments.

According to the new enterprise agreement, Big W staff will be paid between $21.51 and $23.12 an hour, depending on employee seniority.

The agreement will take effect seven days after the approval, and has a nominal expiry date of May 5, 2022.

“With the endorsement of the [Shop, Distributive and Allied Employees’ Association] and the [Australian Workers’ Union], we put forward an agreement that delivered improved conditions for our team while also supporting the continued turnaround of our business,” A Big W spokesperson said.

“More than 90 per cent of those who voted in the ballot supported the proposal, and we look forward to delivering the benefits of the new agreement to our team members soon.”