Retailers want to exempt supervisors and managers from penalty rates and overtime if they are paid 25 per cent more than the minimum salary, meaning workers on more than $57,000 a year could be excluded from award conditions.

The Australian Retailers Association and the National Retail Association on Thursday proposed the Fair Work Commission change the retail award to allow employees in higher-level classifications to agree to be excluded from overtime, penalty rates, allowances, shiftwork pay or leave loadings if they earn 125 per cent of the award.