June 2012 – Update

FWA increases minimum wage to $606.40 per week

In a decision brought down last Friday, 1 June 2012, Fair Work Australia will increased the minimum adult wage by 2.9% or $17.10 to $606.40 per week or $15.96 per hour to be effective from the first full pay period on or after 1 July  2012.

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.

The ACTU had called for a $26 per week increase whilst employer groups said that the increase should be between $9.40 and $14 per week.

The National Annual Wage Review Panel has called this increase “moderate” and aimed at improving the real value of Award wages and standards of living for low-paid workers.  It takes into account carbon tax compensation as well as the “uneven” outlook for economic growth in Australia.

Both Prime Minister Julia Gillard and Opposition Leader Tony Abbott welcoming the increase. Ms Gillard wanted to see low-paid workers “doing better” however Mr Abbott stated “lets face it they’re about to be hit with the carbon tax”.

 

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