17 Jun Wage Increase 2010
Annual Wage Review
The Minimum Wage Panel of Fair Work Australia has handed down its first Annual Wage Review under the Fair Work Act 2009 (Fair Work Act).
The Minimum Wage Panel of Fair Work Australia (the Panel) was established under the Fair Work Act. The Panel is required to review modern award minimum wages and to make a national minimum wage order. In addition, the Panel must review minimum wages in various transitional instruments.
The Panel decided on an increase of $26 in all modern award minimum weekly wages. There will be proportionate increases in hourly minimum wages and annual salaries.
The national minimum wage in the national minimum wage order will be $569.90 per week or $15 per hour. The hourly rate has been calculated on the basis of a 38 hour week for a full-time employee, consistent with s.62 of the Fair Work Act. This constitutes an increase of 69 cents per hour on the transitional national minimum wage.
The operative date of the increase and the national minimum wage order will be 1 July 2010. Although the increase will take effect from the first full pay period that starts on or after that date.
- Junior employees increase will be proportional.
- The increase will flow through to pieceworker rates through the formula in the modern awards.
The determinations necessary to give effect to the increase in modern awards will be made available in draft form shortly after this decision is announced. Determinations varying the modern awards will be made as soon as practicable and the modern awards including the varied wage rates will be published as required by s.292 of the Fair Work Act.
Members are also advised that this increase is on the award rates only and may be absorbed into over award payments.
TTIA Members will be advised as soon as the determinations varying the wage rates are published.