EAS Employer Update: 2010 National Wage Increase PDF Print E-mail

NATIONAL WAGE INCREASE                 
(Extract from Full Bench decision, Fair Work Australia)

‘We have 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 for adult award/agreement free employees is currently set at the minimum wage for the C14 classification, the lowest wage level in the Manufacturing and Associated Industries and Occupations Award 2010.221 That position should continue. 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 $26 per week or 69 cents per hour on the transitional NMW.

The operative date of our determinations and the national minimum wage order will be 1 July 2010.We note that under ss.286(5) and 287(5) they will take effect from the first full pay period that starts on or after that date.”

What does this mean for employees on AWAs, ECA’s, and Single Enterprise Agreements etc?
Answer: The rate paid under all such agreements cannot be less than $15.00 per hour. You can absorb any increase provided the rate you pay does not fall below this amount. You must adjust all rates to reflect this.

Information provided by Colin Dorber from Employment Advocacy Solutions (EAS) Pty Ltd, www.eas.com.au.