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Workplace Relations update – FWA increases minimum wages by 3.4%

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Fair Work Australia’s minimum wage panel decision on 3 June 2011 increased award minimum wages by 3.4%. The decision lifts the federal weekly minimum wage to $589.30 per week or $15.51 an hour. In making its decision, FWA said that in the current economic circumstances a “significant increase is appropriate which will improve the real value of award wages and assist the living standards of the low paid”.

The increase to minimum wages will take effect from the first full pay period that starts on or after Friday,1 July 2011.

All employers, including businesses who are party to a registered agreement (e.g. certified agreement, collective agreement, enterprise agreement, AWA or ITEA), must ensure that employees’ base rates of pay meet or exceed new minimum rates of pay.

Mason Sier Turnbull offers an Annual Updater Service to assist employers that are uncertain how to calculate the new minimum wage rates that apply to their workforce. For further information regarding the Annual Updater Service and the 2011 wage increase, please see the attached.  Further information is available from our Workplace Relations team.

Author: Herbert Fischbacher

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