On 3 June 2010 the Minimum Wage Panel of Fair Work Australia delivered the 2010 annual wage review decision. This decision was the first of the Panel’s annual wage reviews made under the Fair Work Act 2009 (Cth).
The decision
The most significant aspect of the Panel’s decision was a rise in the minimum wage, applicable to all employees receiving wages under Modern Awards or the National Minimum Wage.
The Panel also increased the casual wage loading for all award-based and non-agreement employees.
Modern Award minimum wages
The Panel increased Modern award minimum weekly wages by $26 per week ($0.69 per hour).
National Minimum Wage
The Panel increased the National Minimum Wage by $26 per week ($0.69 per hour). The new weekly National Minimum Wage is $569.90 per week ($15 per hour).
Casual loadings
The Panel increased the casual wage loading for non-award and non-agreement employees to 21%.
Who does the decision apply to?
The Panel’s decision applies to employees covered by these awards or agreements:
- Modern Awards
- National Minimum Wage
- Australian Pay and Classification Scales
- State transitional awards; and
- Enterprise awards under Division 2B of the Fair Work Act 2009 (Cth).
The decision does not apply to:
- Division 2B State Awards, other than enterprise awards under Div 2B; and
- Victorian-only common rule awards.
Employees governed by a Supported Wage System will be addressed in a separate Panel decision to be released in the near future.
What do you need to do?
Employers should ensure that all employees whose employment conditions may be affected by the Panel’s decision receive their correct entitlements. In making such calculations, employers may be able to absorb some of this increase into employees’ existing over-award employment conditions.
Further advice
If you would like any more information or advice in relation to the increase, the Panel’s decision, or the entitlements of employees under the Fair Work Act generally, please contact one of our Workplace Relations team to discuss further.
Nicholas Duggal
Special Counsel
Phone: 61 3 9602 9744
Nicholas_Duggal@tresscox.com.au
Abby Neylon
Solicitor
Phone: 61 3 9602 9426
Abby_Neylon@tresscox.com.au
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To see the contact details of the entire TressCox Employment & Industrial Relations Team, please click here.
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