2012 Annual wage review FAQs
The new minimum rates apply from the first pay period on or after 1 July 2012. This increase applies to the minimum wages of most employees in the national system.
Visit Finding the right pay for tools to help you calculate the new minimum wages.
From 1 July 2012, Fair Work Australia increased the minimum wage in modern awards by 2.9%.
This increase applies to the minimum wage entitlements of most employees covered by the national system.
For adult employees who aren’t covered by an award or agreement, the adult national minimum wage was increased from $589.30 per week to $606.40 or $15.96 per hour.
The new minimum wages start applying from the first pay period on or after 1 July 2012.
So if the pay week is Monday to Sunday, the new minimum wages start applying on Monday, 2 July 2012.
The 2012 annual wage review decision increases modern award weekly wages by 2.9%.
Most modern awards have transitional provisions which provide for the phasing in on the differences between pre-modern award and modern award rates of pay. Visit Finding the right pay for tools to help you calculate minimum wages.
Check your registered agreement to see how it deals with annual wage increases.
The base pay rate must not be less than the relevant modern award pay rate or, if no award applies, the national minimum wage.
You are entitled to the applicable national minimum wage. From 1 July 2012, the rates are:
- Adult employees: $606.40 (before tax), or $15.96 per hour. An adult employee is a national system employee who is 21 years or over.
- Casual employees: casual loading of 23% per hour.
- Apprentices: apprentice wage rates in the Miscellaneous Award 2010. Adult apprentices can’t be paid less than the adult minimum wage. An adult apprentice is 21 or older when they enter into the training agreement.
- Trainees: national training wage rates in the Miscellaneous Award 2010. • Juniors: rates based on percentages for juniors in the Miscellaneous Award 2010.
- Special national minimum wage 1: $606.40 per week, or $15.96 per hour. This is for employees with a disability which does not affect their productivity. This doesn’t apply to juniors, apprentices or trainees.
- Special national minimum wage 2: a percentage of the full special national minimum wage 1 ($606.40 per week, or $15.96 per hour). The percentage is based on the employee’s productive capacity. This is for employees with a disability that does affect their productivity.
Visit Finding the right pay for information and tools to help you calculate minimum wages.
The penalty rates and loadings in modern awards are often a percentage of the base hourly rate. For example, rates for working on a Saturday could be time and a half, or an extra 50% on top of the base rate. Any change to the base rate of pay therefore flows through to these penalty rates and loadings as well.
Most modern awards have phasing arrangements for wages and penalties. Visit Finding the right pay for information and tools to help you calculate minimum wages.
Work-related allowances (such as leading-hand and industry allowances) in modern awards are a percentage of the ‘standard rate’ in the award. The standard rate is defined in each modern award and is usually the weekly minimum rate of pay for a certain classification. Since the annual wage review increases the standard rate, this will also flow through to any work-related allowances.
Expense-related allowances are increased by Fair Work Australia to meet the requirements of the relevant modern award. We publish the changes by 1 July each year.
Check your modern award for details. Visit How to find an award for information about finding the award that applies to you.
Yes. Piece rates are increased based on the increase to modern award minimum wages. Visit Finding the right pay for information and tools to help you calculate minimum wages.
No, as long as your pay stays above the base pay rate in the relevant modern award, agreement or national minimum wage order.
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