Australia’s new pay rates take effect from July 1

28 June 2012

New Australian pay rates start to take effect from July 1 - and employers and workers can visit the Fair Work Ombudsman’s website now to determine the rates that will apply to them.

The new rates will apply to adult and junior employees, trainees, apprentices, employees with a disability and workers employed under piece rates.

Fair Work Ombudsman Nicholas Wilson says it is particularly important that employers are aware of the increases and how they affect their businesses.

“Employers can go to the Fair Work Ombudsman’s website now to determine what the new pay rates will be,” Mr Wilson says.

In accordance with the Annual Wage Review decision by Fair Work Australia earlier this month, the National Minimum Wage increases by 2.9 per cent to $606.40 per week, or $15.96 per hour.

The Annual Wage Review decision also increases minimum rates, allowances, casual loadings and penalty rates in Modern Awards and some other minimum wage instruments.

Increases in minimum pay rates take effect from the first full pay period on or after July 1.

The Fair Work Ombudsman has a variety of tools and resources available on its website – - to assist employers to determine the correct pay rates for their staff members.

Award Finder and PayCheck Plus can help employers determine which Modern Awards apply to their employees, as well as the applicable classifications and pay rates, including base pay rates, allowances, overtime and penalty rates.

The latest edition of the Fair Work Ombudsman’s eNewsletter, available on the website, focuses on the Annual Wage Review, providing case studies, checklists, a range of handy tips for employers and details of common misunderstandings.

An Annual Wage Review FAQs section on the website provides further detailed information on a range of important considerations.

Employers need to be aware that some annually indexed figures also increase in July.

For example, the high income threshold for Modern Awards increases from $118,100 to $123,300, which may affect Award coverage and access to unfair dismissal protections for some employees.

Employers can sign up to receive the Fair Work Ombudsman’s eNewsletter at

Follow the Fair Work Ombudsman on Twitter @fairwork_gov_au external-icon.png or find us on Facebook external-icon.png.

Employers or employees seeking assistance can also contact the Fair Work Infoline on 13 13 94 from 8am-to-6pm weekdays. A free interpreter service is available on 13 14 50.

Media inquiries:

Ryan Pedler, Assistant Director, Media & Stakeholder Relations,
(03) 9954 2561, 0411 430 902

Want to save this information for later?

If you might need to read this information again, save it for later so you can access it quickly and easily.


Page reference No: 4107