Posted by Skye Engwerda, Solicitor
Minimum Wage Increase The Fair Work Australia Minimum Wage Panel ("the Panel") has increased minimum wages by 3.4%. Modern Award determinations were published by Fair Work Australia taking into account the Panel's decision of 3 June 2011.
The 3.4% increase applies across the board to the federal minimum weekly wage, award rates, junior employees, and employees under training arrangements.
The increases will take effect from 1 July 2011 and include:
- an increase of $19.40 per week to the National Minimum Wage bringing the minimum weekly rate for Award/Agreement free employees to $589.30 per week (or $15.51 per hour);
- an increase in casual loading for Award/Agreement free employees from 20% to 22 %; and
- an increase of 3.4% to all Modern Award minimum wages.
The decision comes after submissions were made by a number of parties, including employer associations, unions and the Australia Government, who sought increases ranging from $9.50 per week to $28 per week.
The Panel rejected arguments that increases should be delayed due to the exceptional circumstances of recent natural disasters, pointing to the difficulty of effectively targeting deferral to those groups in need and Australia's otherwise strong economic performance.
Employers who pay employees at minimum wage rates pursuant to a Modern Award, the National Minimum Wage or other instrument, should ensure that the revised pay rates are implemented from 1 July 2011.
Employers who pay their employees above the minimum rates in applicable Modern Awards may be able to absorb the increases without making any changes.
For Further Information
Professional advice should be sought where employers are uncertain regarding the applicability or implementation of the increase to their employees.
For further information, please contact Skye Engwerda on (03) 5480 6344 or by email at skyee@colegal.com.au.
