Annual Wage Review Decision Announced - Effective 1 July
Fair Work Australia released its 2012 Annual Wage Review decision on 1 June 2012. The decision takes effect from the first pay period starting on or after 1 July 2012.
Fair Work Australia announced its Annual Wage Review decision on 1 June 2012 and has:
- raised minimum adult weekly wages by 2.9%
- set a national adult minimum wage of $606.40 per week or $15.96 per hour for employees without coverage of awards or agreements (who are not junior employees, employees to whom training arrangements apply or employees with disability)
- set a casual loading for employees without coverage of awards or agreements at 23%, with a view to increasing this in instalments until it is brought into line with the standard casual loading of 25% in modern awards by 2014
Increases to rates of pay and allowances, penalties and loadings, as a result of the Annual Wage Review, are payable from the first full pay period to commence on or after 1 July 2012.
Revised Modern Award rates will be made available prior to 1 July by the Fair Work Ombudsman; however it must be remembered that most awards contain a standard 'transitional provisions' clause (as explained in a previous article of Your HRmatters) and most award covered employees will be subject to these transitional rates. Generally, Modern Award allowances will also be increased as a result of the decision.
Employers should start reviewing salaries and prepare to implement the increase to minimum rates of pay and also consider how employee pay increases are affected by any transitional arrangements.
There is no doubt that this can be complicated so please contact us at Your HRmanager for advice and assistance.