Australian minimum wage rises by 3.4%

On Friday 3rd June 2011, the Minimum Wage Panel of Fair Work Australia awarded a Federal Minimum Wage increase of 3.4%. This decision increases the national minimum wage by $19.40 per week to $589.30 per week ($15.51 per hour).

The decision by the panel means an increase of 3.4% in all Modern Award minimum wages, Division 2B Enterprise Awards, Transitional Australian Pay and Classification scales and state reference transitional awards.

Effective from 1st July 2011, employers operating under an Enterprise Agreement need to ensure that their wage rates are not less than the new minimum or transitional rates in the relevant Modern Award.

Examples of the 3.4% minimum wage increase are the current C10 (trade) rate of $663.40 will increase by $22.60 per week, or a weekly rate of $735 will increase by $25 per week.

Weekly wages are to be rounded to the nearest 10 cents. Hourly rates would then be calculated on the weekly rate unless otherwise specified in the relevant Award or Industrial Instrument.

The increase will apply from the beginning of the first pay period on or after 1st July 2011.

1st July 2011 also marks the second transitional phase for most rates of pay of 60% of the transitional amount.

For more information contact Livingstones Australia on 07 3833 1200, www.modernawards.com.au