Fair Work Australia announce Annual Wage Review decision - what does it mean for your business?

The national minimum wage for Australia's 1.4 million lowest paid workers should be raised by $17.10 a week, Fair Work Australia has said.

Under the review, the adult National Minimum Wage will increase by 2.9% ($17.10) to $606.40 per week and to $15.96 per hour (equating to a rise of $0.45 per hour). 

So what does this mean for your business? 

The NSW Business Chamber have summarised the main points for us as follows: 

• All Modern Award rates of pay are increased by 2.9% effective from the first full pay period commencing on or after 1 July 2012.  
• This increase can be absorbed into any existing over award payments. You will need to check the absorption clause in your Modern Awards.  
• If you are transitioning rates of pay to the Modern Award, an employee’s new minimum rate is his/her new Modern Award rate plus or minus 40% of the transitional amount.  
• For award free casual employees – the default casual loading has increased from 22% to 23% effective from the first full pay period commencing on or after 1 July 2012. 

For full details of the Annual Wage Review Decision see the Fair Work Australia website: http://www.fwa.gov.au/sites/wagereview2012/decisions/2012fwafb5000.pdf 

Do you find it difficult to comply with Modern Awards and related changes? 

Ensuring you are compliant with penalty rates and modern awards can represent a major headache for many organisations, particularly those that operate nationally. 

An electronic Time and Attendance system takes the stress out of Award Interpretation and safeguards your organisation from potential legal action, by automating compliance with workplace legislation and your business’ work rules. 

A Time and Attendance system allows you to quickly and easily modify base and overtime pay rates, weekend and public holiday penalties, leave loading and shift penalties, as well as Modern Award rates as needed. 

To find out more about effective Award Interpretation contact Mitrefinch today on 1300 884 831 (+61 2 8762 7888 if outside Australia) or sales@mitrefinch.com.au