Modern Award Wages to Increase by 3.4%

Fair Work Australia has completed its second annual wage review under the Fair Work Act 2009.  It has determined that there will be a 3.4% increase in modern award wages, effective from the first pay period on or after 1 July 2011.  Revised modern awards which include the increased wages will be published on Fair Work Australia’s website.  A similar increase will be applied to transitional instruments under the Act which constitute part of the safety net, such as transitional Australian Pay and Classification Scales (APCS).

The national minimum wage will increase by $19.40 per week to $589.30 per week, or $15.51 per hour.

Amongst other things, the Minimum Wage Panel rejected a submission that the wage increases should be deferred in the case of employers affected by recent natural disasters such as flooding in Queensland, New South Wales and Victoria and Cyclone Yasi.

The Annual Wage Review 2010-11 [2011] FWA 3400 decision and summary statement are available on Fair Work Australia’s website.

The Employment Law Guide includes commentary on minimum wages set by the Fair Work Act 2009, as well as commentary on how to find and enforce an applicable modern award.

By Paul Moorhouse

Paul is the co-author of Smokeball’s Employment Law Guide.