The Annual Wage Review decision, to take effect from 1 July 2011, has been announced by Fair Work Australia increasing wages by 3.4% or $19.40 per week.

Fair Work Australia announced its Annual Wage Review decision on 3 June 2011 and:

• raised minimum adult weekly wages by 3.4% or $19.40 per week
• set a national adult minimum wage of $589.30 per week (or $15.51 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 22%, with a view to increasing this in instalments until it is brought into line with the standard casual loading in modern awards by 2014.

New Modern Award rates will be made available soon, however it must be remembered that most awards contain a standard 'transitional provisions' clause (as explained in our last issue of Your HRmatters) and most award covered employees will be subject to these transitional rates. Most modern award allowances will also be increased as a result of the decision.

Increases to rates of pay and allowances, as a result of the annual wage review, are payable from the first full pay period to commence on or after 1 July.

Employers should soon start preparing 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 the team at Your HRmanager for advice and assistance.