On 3 June, Fair Work Australia's minimum wage panel passed its first ever decision to increase modern award minimum weekly wage rates by $26 or an extra 69c an hour, taking the new minimum weekly rate to $569.90 or hourly rate to $15.00. Casual loading will remain at 25% and 21% for award free employees.
The new minimum wage rates takes effect from the first pay period on or after 1 July 2010 - that's less than a couple of weeks away!
The FWA panel stated that “Over the past decade there has been a relatively small growth in the real value of the National Minimum Wage, about 2 per cent, which is well below the growth in labour productivity of 16 to 20 per cent. The implication is that minimum wage earners have only shared to a very limited extent in the benefits of productivity growth”.
If your employees are subject to a State Award, and that minimum wage obligation is less than the current modern award rates, then your minimum wage obligation after 1 July 2010 may be less than the new modern award rates. Otherwise you need to ensure the minimum wage meets the new minimum standard. Contact FWA for more info.
If you are currently paying the employee above the new modern award pay rates, then you have nothing further to do!.
Don’t forget to check your operative enterprise agreement as well to ensure the rates in the agreement are not less than the minimum wage rate provided for in the modern award
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