On 3 June 2010, the Minimum Wage Panel of Fair Work Australia granted its first minimum wage increase – which is effective 1 July 2010. The increase is $26 per week and applicable to all Modern Awards.

Most Modern Awards contain transitional provisions which are also due to commence on 1 July 2010. The transitional provisions should be applied to the Modern Award rates once the wage increase has been applied. To calculate the transitional wage the previous rate is subtracted from the new rate and then the difference is multiplied by the appropriate percentage rate (which can be found in the relevant Modern Award).

The Fair Work Ombudsman remains vigilant in pursuing employers who are not adhering to minimum wage requirements, imposing penalties on employers, in addition to enforcing back pay claims. Therefore, it is imperative that you are aware of your obligations and, most importantly, compliant.

To work out the minimum wage rates for your relevant Award(s), give us a call on 07 5444 7771 or email us if you have any queries in relation to the National minimum wage increase.