June 2011 – Update

FWA increases minimum wage to $589.30 per week

In a decision brought down this morning, Friday 3 June 2011, Fair Work Australia will increased the minimum adult wage by 3.4% or $19.40 to $589.30 per week to be effective from the first full pay period on or after 1 July  2011.

In bringing down its second annual wage review under the Fair Work Act 2009 Fair Work Australia has taken into consideration a strong economy, standard of living needs, workforce participation and remuneration principles in addition to submissions from both peak union and employer bodies. Unions were seeking a $28 per week increase, which represented a 4.2% increase whereas employer groups were seeking a modest increase from $9.50 to $14 per week.

Whilst there were submissions to suggest any wage increase should be delayed for employers affected by recent natural disasters such as the floods and Cyclone Yasi, this submission has been rejected.

The decision to increase adult wages will also flow through on a proportional basis to the minimum wages of junior employees, employees who are employed under training arrangements, employees with disability and employees being paid under a piece rate arrangement.

Award / agreement free junior employees will have their wages increased based upon the percentage increase under the Miscellaneous Award 2010.

Casual loading under modern awards will remain at 25% however casual loading for those that are award / agreement free will increase to 22%.

Transitional instruments will be adjusted by 3.4% from the first full pay period on or after 1 July 2011.

Contact Nicole or John at Industrial Relations Law for more information on these or any other employment matters.