The state wage decision made 27 June 2008 has not only allowed for increases to award rates but has also established for the first time a state minimum wage which applies to employees who are not under the federal system and who are award-free.

This means that(except for a small number of highly paid adults, or adults who are under a training arrangement or disability wage)there are no adult employees in NSW who are not subject to a statutory minimum wage.

This decision established a State Minimum Wage of $552.70 per week(adult) (or $14.55 per hour for an employee employed on an hourly rate) which applies from 27 June 2008.

The NSW Minimum Wage applies to employees:

• Who are not covered by a state award or a formal industrial instrument; and
• Whose employer is not in the federal system.

The NSW Minimum Wage does not apply to employees:

• Whose salary is in excess of $101,300
• Who are covered by a state award or formal industrial instrument
• Who are employed by a federal system employer.

Employees of federal system employers are subject to a federal pay scale (derived from a state or federal award) or the (adult) Federal Minimum Wage. It is $13.74 per hour or $522.12 for a 38 hour week.