National minimum wage decision
The rates in Pay Rates Calculator have been updated to reflect Fair Work Australia's annual wage review decision and the model phasing arrangements that apply in most modern awards.
The annual wage review decision applies from the first pay period on or after 1 July 2010. |
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From 1 January 2010, modern awards cover most workplaces.
Transitional arrangements in most modern awards mean that some new pay rates commence on the first full pay period on or after 1 July 2010.
Important! This means that pay rates for many employees change on 1 July 2010.
Transitional arrangements in most modern awards give employers and employees time to adjust to the changes by allowing new pay rates to be phased in over a period of four years until the full modern award rates apply on 1 July 2014.
In this period pay rates need to be calculated with reference to the pre-modern award entitlement that used to cover the employee before 1 January 2010 as well as the relevant modern award entitlement.
What is the Pay Rates Calculator?
The Pay Rates Calculator helps you calculate base rates of pay and penalty rates in accordance with the model transitional provisions contained within most modern awards. The Pay Rates Calculator will also take into account any changes to pay and penalty rates resulting from Fair Work Australia’s annual wage review, expected to take effect from the first pay period on or after 1 July 2010. Employers should check that they are paying the correct rates from 1 July each year.
Once you’ve calculated your base rates of pay and penalties, you can export the results to your payroll system or print a copy to keep a record.
The pay rates calculated by the Pay Rates Calculator are minimum rates only – employers may choose to pay their employees more than the minimum at any time.
There are certain specific transitional arrangements that affect the Children Services modern award, the Social, Community, Home Care and Disability Services modern award, some Building and Construction modern awards and some South Australian Hospitality employees. Information relating to the effect of these arrangements in the Plumbing and Building and Construction modern awards is available at specific transitional arrangements.
More information on other modern awards with specific transitional arrangements will be coming soon.
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Who can use the Pay Rates Calculator?
Employers and employees can use the Pay Rates Calculator to calculate base rates of pay and penalties if they were:
- covered by a pre-modern award prior to 1 January 2010
- are now covered by a modern award containing the model transitional provisions.
How do I use the Pay Rates Calculator?
You will need to know all relevant information on entitlements from the modern award and the pre-modern award for the Pay Rates Calculator to calculate the employee’s base rate of pay and penalties. Among other things, this will include:
- the employee’s relevant modern award and pre-modern award classification
- information on any applicable industry allowance and/or all purpose allowances
- detailed information on penalties prescribed by the modern and pre-modern award.
You will also need to know an employee’s working hours to calculate penalty rates for a particular shift.
The Pay Rates Calculator will help you identify the relevant entitlements from the modern award you select. You will however, need to provide all information on pre-modern award entitlements to complete your calculations.
The Pay Rates Calculator will calculate minimum rates of pay based on the details you provide. If you have not provided the right information, or there are changes in your circumstances, it may affect the accuracy of the rates that the Pay Rates Calculator provides.
For more information, you can call the Fair Work Infoline on 13 13 94 or chat online with our a
Live help advisor.
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