Federal Minimum Wage Decision

posted by Employment Innovations on June 25th, 2012  Posted in News

On 1 June 2012 Fair Work Australia delivered its decision in the 2012 Minimum Wage Review.

The outcome of the Review in relation to modern award minimum wages is that from the first full pay period on or after 1 July 2012 minimum weekly wages are increased by 2.9 per cent, with commensurate increases in hourly rates on the basis of a 38 hour week.

The result is a national minimum wage of $606.40 per week or $15.96 per hour and a casual loading of 23 per cent for award/agreement free employees. The casual loading for all other employees will come from the transitioned casual loading in the relevant award.

The Review Order also contains two special national minimum wages for award/agreement free employees with disability: for employees with disability whose productivity is not affected, a minimum wage of $606.40 per week or $15.96 per hour based on a 38 hour week, and for employees whose productivity is affected, an assessment under the supported wage system, subject to a minimum payment fixed under the SWSS.
For award/agreement free junior employees wages provisions are based on the percentages for juniors in the Miscellaneous Award 2010 applied to the national minimum wage. The apprentice wage provisions and the NTWS in the Miscellaneous Award 2010 apply for award/agreement free employees to whom training arrangements apply. Award free adult apprentices should not receive less than the national minimum wage – other apprentice rates come from the applicable award.

Employers should now review rates of pay to see that they meet the new rates of pay in the applicable industrial instrument, or for award free employees, the minimum wage.

This is the third year of transitioning from pre-reform awards and NAPSAS to Modern Awards – so base rates of pay, penalties and loadings are again subject to transitioning.

If you require assistance with meeting the correct rates of pay, EI offers a number of services to help employers remain compliant. Call us on (02) 8030 8888 for further information.

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