Minimum Wages

Minimum wages are an important part of the Government’s framework of safety net minimum standards.

This Fact Sheet sets out how those Minimum Wages will be set and adjusted and who they will apply to. Further information can be obtained by attending one of the free Member Briefings VECCI is holding on the new Fair Work laws. The Helpline can also provide further advice and information.

What’s  Proposed?

During the past 3 years a separate Government agency known as the Fair Pay Commission has been responsible for dealing with minimum wages. It published its decisions in Minimum Wage Orders.

That role will now revert back the Industrial Relations Commission (Fair Work Australia) and minimum wage rates will again be contained in awards.

What’s  Proposed?

• The Commission will carry out annual reviews and each decision will take effect from 1st July.
• Any increases granted could only be deferred in exceptional circumstances.
• Allowances will be automatically varied at the same time.
• A national minimum wage order will also be created for employees not covered by an award. It will include minimum rates for juniors, trainees and employees with a disability.

The Criteria

In setting minimum wages the Commission will be required to consider –

• the performance and competitiveness of the Australian economy, including productivity, business competitiveness and viability, inflation and employment growth,
• promoting social inclusion through increased workforce participation,
• relative living standards and the needs of the low paid,
• the principle of equal remuneration for work of equal or comparable value, and
• providing a comprehensive range of fair minimum wages for junior employees, employees to whom training arrangements apply, and employees with a disability.

The Guarantee

Once a minimum rate has been established for an award classification it will be the absolute minimum to be provided for any employee performing that work. Any agreement, award or other arrangement covering those employees would be required to reflect that rate as an absolute minimum.

VECCI

VECCI is directly involved in this process of revamping the award framework. We will provide updates on the new modern awards as they are put in place. VECCI Members will also be advised about the changes to award conditions that are introduced as part of the modernisation process.