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What do I need to do?

Employers and employees who are affected by this change need to make sure that the correct pay and conditions are provided after 31 January 2011.

If you are unsure about your obligations after you have read this information, you can Contact us for assistance.

You will need to find the transitional rate of pay. To do this, you can use our Pay tools which will automatically calculate the transitional rate for you.

Usually, the transitional rate will apply as the minimum rate that can be paid. However, there are two notable exceptions.

To find out whether an exception applies in your situation, you will need to compare the rate of pay from the Division 2B State award (as at immediately before 1 February 2011) with the transitional rate and the modern award rate (as at 1 January 2011).

You can find the Division 2B State award and the modern award using our Award Finder tool, and the transitional rate using our PayCheck Plus tool.

If the minimum wage in a Division 2B State award is lower than the modern award equivalent, but the transitional rate is higher than the modern award equivalent, the full modern award rate will apply.

Example

If the Division 2B State award rate of pay is $15, the modern award rate of pay is $16 and the transitional rate of pay is $17, the former Division 2B employer is not required to pay more than the modern award rate of pay of $16.

Transitional rate of pay: $17
Modern award rate of pay: $16
Division 2B State award rate of pay : $15

If the minimum wage, penalty rate or loading in a Division 2B State award is higher than the modern award equivalent, but the transitional rate is lower than the modern award equivalent, the full modern award rate will apply.

Example

If the Division 2B State award rate of pay is $17, the modern award rate of pay is $16 and the transitional rate of pay is $15, the employee will receive the modern award rate of pay of $16.

Division 2B State Award rate of pay: $17
Modern award rate of pay: $16
Transitional rate of pay: $15

Some modern awards have different transitional provisions. Find out more on the Other Transitional Provisions page.

If you are unsure about your obligations after you have read this information, or would like help determining your rate of pay, you can Call us or chat online with a  Live Chat  adviser.

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Page last updated: 31 August 2011