From 1 January 2010, modern awards have covered most workplaces. The commencement of modern awards means that there have been changes to minimum terms and conditions for many employees. The changes vary by state, industry and employer.
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, or would have covered, the employee before 1 January 2010 as well as the relevant modern award entitlement.
The transitional provisions include a phasing schedule which allows wages, loadings and penalty rates which are higher or lower than pre-existing conditions to be progressively introduced. Where there was no existing loading or penalty applying under the existing instrument then the new loading or penalty in the modern award is also progressively introduced.
The phasing instalments adjust each year from the first full pay period on or after 1 July until the end of the transitional period in July 2014.
The Fair Work Ombudsman has a number of tools available to automatically calculate base rates of pay for most modern awards. These tools, along with some information provided by you, can quickly and easily help you find the right pay.