Minimum wage and modern awards

Minimum wage and modern awards 
Employees in the national system generally cannot be paid less than minimum wage and minimum wage will be outlined in your award or agreement. Modern Awards cover most Australian employers and employees and contain the minimum terms and conditions for employees in particular industries and occupations. The current full-time minimum wage is $16.37 per hour or $622.20 per week. Casuals covered by the national minimum wage get an extra 24% ($20.30 per hour)

While modern awards contain minimum wages, some modern awards have transitional arrangements in place, whereby the wage-related components that came into effect 1 July 2010 may be phased in over five years with transitional provisions on:

·        base rates of pay, including piecework rates

·        casual and part-time loadings

·        Saturday, Sunday and public holiday penalty rates

·        evening and other penalty rates   

·        shift allowances or penalties.

It is important that employers check the relevant Award. These are generally found in Schedule A of the award. Search for your modern award using the Fair Work Ombudsman’s new Award Finder.

What if an employer gets it wrong? 
Any breach in the terms contained in a Modern Award or a national minimum wage order may be investigated and enforced by the Fair Work Ombudsman (FWO). The investigation may result in expensive audits and penalties and the breach may be in terms of:

·        pay

·        conditions (annual leave or sick leave)   

·        unlawful workplace discrimination   

·        workplace rights


Source: www.fairwork.gov.au