The 2012 Annual Wage Review is now underway. We are expecting Fair Work Australia to announce it's decision in early June and any change to minimum wages will start from 1 July 2012.
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The national minimum wage acts as a safety net for employees in the national workplace relations system to provide minimum rates of pay for employees not covered by awards or agreements. National minimum wage orders are made by the Minimum Wage Panel of Fair Work Australia.
Australia's minimum wage is $15.51 per hour or $589.30 per week. Generally, employees in the national system shouldn't get less than this.
An employee's basic rate of pay depends on such things as their age, job classification and what industrial instrument they're covered by (e.g. a modern award, pre-modern award, transitional Pay Scale, workplace agreement and so on).
The minimum wages received by employees in the national workplace relations system are reviewed by Fair Work Australia annually, with any adjustments taking effect from the first pay period on or after 1 July each year.
The review considers the rates of pay in:
- modern awards - from 1 January 2010 these specify the minimum wage rates for employees covered by a relevant modern award (subject to any transitional provisions)
- The national minimum wage - this applies to award and agreement-free employees.
Employers and employees cannot agree to a rate of pay which is less than the applicable minimum wage. An employee may also be entitled to other allowances or loadings, depending on the job they do (e.g. a casual employee may be entitled to a casual loading).
National minimum wages for apprentices, juniors & trainees
Special national minimum wages have also been set for trainees, apprentices and juniors who are not covered by any other award or agreement. These apply from the first pay period on or after 1 July 2011.
For junior employees, the minimum rates are:
- Under 16 years of age $5.71
- At 16 years of age $7.34
- At 17 years of age $8.96
- At 18 years of age $10.59
- At 19 years of age $12.80
- At 20 years of age $15.15.
For apprentices, the rates are:
- Year 1 of apprenticeship $9.93
- Year 2 of apprenticeship $11.74
- Year 3 of apprenticeship $14.45
- Year 4 of apprenticeship $17.16.
For employees on a traineeship, the minimum rates are:
At least the relevant wage from Schedule E- National Training Wage in the Miscellaneous Award 2010.
National minimum wages for employees with a disability
The Minimum Wage Panel of Fair Work Australia has also set two special national minimum wages for employees with disability. See Employees with disability for more information.