Fair Work Australia minimum wage increase
Fair Work Australia’s minimum wage panel has increased federal award minimum weekly wages by 2.9%, an increase of A$17.10 a week to A$606.40, or A$15.96 per hour. This increase, from the current minimum rate of A$589.30 a week, will commence from the first full pay period on or after 1 July 2012.
In describing the rationale for the decision, the Panel concluded that a “significant increase” was not warranted based on a review of current economic conditions nor were there exceptional circumstances generally or for any specific industries that justified a deferral of the increase.
Given this change is due to take place within weeks, employers should contact payroll service providers and payroll personnel now to provide instructions to review the rates of pay that apply to employees and ensure that the increased minimum rates are introduced on time.
Where above award rates are currently being paid, employers must determine whether these rates will absorb the increase. If not, the wage rates must be increased to meet the new minimum standards.