The decision handed down by
the Panel on Friday increases the national minimum wage to $606.40 per week or
$15.96 per hour. This constitutes an increase of $17.10 per week or 45 cents
per hour being the equivalent of a 2.9% minimum wage increase. The decision
takes effect from the first pay period commencing on or after 1 July 2012
The
national minimum wage order will contain a number of special wage provisions
for award / agreement free employees, including juniors and employees with
disabilities.
The 2012 Minimum Wage
Decision applies to all employees covered by the national workplace relations system.
The decision increases pay rates for minimum wage and modern award employees,
all transitional Australian Pay and Classification Scale employees, State
reference transitional award and Division 2B State enterprise award employees.
The decision will not apply to:
·
employers who are sole traders and partnerships in
Western Australia;
·
corporations in Western Australia whose main
activities are not trading or financial;
·
state government public sector employers and
employees (except in Victoria); and
·
some local government employers and employees.
If an employee is paid
above the relevant modern award base rate of pay, provided an employee’s over
award payment still results in them being paid at least the new base rate of
pay, the employer will be considered to have met their obligation with respect
to the minimum wage increase.
Employers have a legal
responsibility to ensure that all of their employees are paid at least what
they would receive under a modern award, registered agreement or national
minimum wage order. We recommend a review of your payroll obligations to ensure
you are meeting your responsibilities in readiness for 1 July 2012.
Should you require any
assistance in reviewing your payroll obligations or if you have any questions
about this wage review and its impact, please contact us.
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