Today a Full Bench of Fair Work Australia issued the 2011 Minimum Wages decision. From 1 July 2011, minimum wage rates in modern awards will rise by 3.4%, with weekly wages to be rounded to the nearest 10 cents.
The new national minimum wage for adult award/agreement free employees will be $15.51 per hour.
Junior employees, apprentices and trainees will get proportionate increases based on wage schedules in the relevant modern award.
However, this does not necessarily mean that all employees will get a pay rise. If the employee is covered by an award, and their rate of pay is already in excess of the minimum enforceable wage rate, then the employee is not automatically entitled to a pay rise. If you have agreed with the employee that you will pass on minimum wage increases regardless of the employee's entitlement, then you may have a contractual obligation to do so.
Any employee who is covered by an enterprise agreement will not be entitled to an increase in minimum wages unless the agreeement specifies that this is to happen.
Please also bear in mind that the transitional provisions that operate in most modern awards may mean that the minimum enforceable rate of pay is not the rate specified in the modern award itself. This is particularly the case for clerical and retail awards. For more information on how to calculate transitional minimum rates of pay check Schedule A of the relevant modern award, or speak to Emma.
For further information, please call Emma on (03) 8822 3712 or 0411 708 073, or email her on emma@emmawatt.com.au.
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