On 1st June 2012 Fair Work Australia handed down its 2012 annual wage review decision.
- All Modern Award rates of pay are increased by 2.9% effective from the first full pay period commencing on or after 1 July 2012.
- This increase can be absorbed into any existing over award payments (check the absorption clause in your Modern Awards)
- Award free casual employees – the default casual loading has increased from 22% to 23% effective from the first full pay period commencing on or after 1 July 2012.
The 2.9% increase raises the adult National Minimum Wage to $606.40 per week (an increase of $17.10 per week) and to $15.96 per hour (an increase of $0.45 per hour). The National Minimum Wages for employees under training arrangements, juniors and employees with a disability have also been increased by 2.9%.
We would strongly recommend all employers review all hourly rates and wages for their employees – to make sure they are paying the correct rate.
If you would like any assistance with the calculation of wages or current market salaries please contact Kelly Langdon on 3218 3900.
This article was published in the Winter 2012 Horizon. For a pdf version of the newsletter please click here.