2011 Minimum Wage Increase - decision handed down

Fair Work Australia’s Minimum Wage Panel has today ordered a 3.4% increase to minimum wage rates which will take effect from 1 July 2011.

The increase will affect the national minimum wage for award and agreement free employees by increasing the weekly minimum rate by $19.40 per week to $589.30 or 51 cents per hour $15.51. Similarly, the 3.4% increase will also apply to all minimum pay rates for classifications under modern awards with weekly wages rounded to the nearest 10 cents. The revised modern award pay rates will be published on Fair Work Australia’s website shortly.

The Panel adopted a percentage increase rather than a flat dollar increase, which has been adopted in recent years, as the Panel considered the flat dollar approach reduced the real value of the increases for higher level award classifications.

Requests by employer groups to delay the increase for employers situated in areas affected by the recent natural disasters in Queensland was rejected by the Panel who forecasted healthy economic conditions for the year ahead.

Employers who pay employees under modern awards or in accordance with the national minimum wage need to ensure the revised pay rates are implemented from 1 July 2011. Professional advice should be sought in the event of any uncertainty regarding the applicability of the increase to your employees.

Harwood Andrews Lawyers can provide professionallegal assistance with workplace relations please contact Harwood Andrews Lawyers Workplace Relations team.

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