Increase in Minimum Wages
6 July 2010
The Minimum Wage Panel established under the Fair Work Act 2009 and headed by the President of Fair Work Australia and comprising six other members, recently handed down its decision after conducting the Annual Wage Review 2009-10.
The main thrust of the Panel’s Decision is that, as from the first pay period commencing on or after 1 July 2010 –
- the minimum weekly rates of pay contained in Modern Awards will be increased by $26.00, with pro-rata increases in the hourly minimum wages (calculated by adding $26.00 to the relevant weekly rate and then dividing by 38 or by the specified number of weekly hours where the Modern Award provides for less than 38 hours per week).
- for employees who are not covered by Awards or Agreements (e.g. Enterprise Agreements, AWAs/ ITEA’S), the minimum wage has been increased to $569.90 per week or $15.00 per hour;
- the casual loading for employees who are not covered by Awards or Agreements has been set at 21%, on the basis that this loading will be increased in instalments until it is brought into line with the standard casual loading in Modern Awards by 2014;
- there will be two special National minimum wages set for Award/Agreement-free employees with disabilities, one for those whose productivity is unaffected by their disability (i.e. $596.90 for a 38-hour week or $15.00 per hour) and those whose productivity is affected (utilising the Supported Wage System applied against the National minimum wage rate).
What should you do?
As from the first pay period commencing on or after 1 July 2010 -
- ensure that you implement the wage increases to the minimum rates of pay as from the first pay period after 1 July 2010, after taking into account the transitional phasing-in arrangements contained in Modern Awards;
- ensure that the 25% loading applicable to casual employees covered by Modern Awards are payable on the new minimum wage rates (again, having regard to the transitional phasing-in arrangements contained in the relevant Modern Award);
- ensure that the new casual loading of 21% is paid to your Award/Agreement-free casual staff;