17 November 2006
Fair Pay Commission Increases Minimum Wages
BREAKING NEWS!
The Australian Fair Pay Commission has today made its first adjustment to the Federal Minimum Wage since the introduction of the WorkChoices legislation in March this year.
Increase to Federal Minimum Wage and APCS rates (including NAPSAs and Federal Awards) The adjustment, which takes effect from 1 December 2006, provides for a $27.36 increase per week to the federal minimum wage and to pay scales which currently provide less than $700 per week. Pay scales paying $700 and above will receive an additional $22.04 per week. This brings the new minimum wage up to $511.86 per week (or $13.47 per hour).
The increase comes close to the $30 per week increase called for by the ACTU, but the staggered increase also reflects the Commission’s view that lower-paid workers are more reliant on minimum wages than are higher paid workers. The Australian Industry Group had lobbied for only a $14 per week rise.
Chair of the Commission, Professor Ian Harper, said the decision was balanced and fair and provided a real increase for low paid workers. In its reasoning, the Commission took into account that employees reliant on the minimum wage and pay scales had not had an increase for 18 months. The Commission was also required to have regard to unemployment and competitiveness across the economy, as well as the more traditional safety net function, with a view to promoting the economic prosperity of the nation.
Junior Employees & Supported Wages
Junior employees, employees to whom training wages apply and employees with a disability will also benefit from the changes, with their pay rates now to be adjusted relative to the new, higher standard rates. Generally, the formulas in the relevant pre-reform wage instruments will continue to apply, but using the new rates as the basis. Where there is no formula in the instrument, the rates will generally be pro rated to retain their current relativity to the appropriate standard rate.
For more information and advice contact one of our Partners in Sydney (02) 9922 5188 or Melbourne (03) 9614 3900.
Fisher Cartwright Berriman
Workplace Relations Law Specialists
Sydney - (02) 9922 5188
Melbourne - (03) 9614 3900
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