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What employers need to do for 1 July wage changes

Fair Work Australia has recently released its annual wage review decision.

Employers need to ensure that they pay affected employees the appropriate new modern award or minimum pay rate from 1 July.

The Fair Work Australia 2011 Annual Wage Review decision increases:

  • modern award weekly wages by 3.4%
  • the national minimum wage for adults to $589.30 per week or $15.51 per hour
  • allowances under applicable modern awards
  • minimum rates for juniors, apprentices and trainees.
The decision takes effect from the first pay period on or after 1 July 2011.

How should employers prepare for 1 July?

Employers can prepare for the change to minimum pay rates by:

Checking what your staff are covered by - this could be a modern award, a collective agreement, national minimum wage rate or other type of industrial instrument. This will tell you what pay rates apply.

You can check what covers you by:
using the Award Finder tool at See:
calling us
talking to your employer or industry association
Remember that you will also need to know the modern award classification for each staff member.
Keep up to date with changes in your modern award - sign up for alerts to changes in your modern award by registering with Fair Work Australia Subscriptions .
Check that your payroll systems are ready - your payroll systems and staff should be preparing for the change. They need to be aware that it will apply from the first pay period on or after 1 July 2011.
Use FairWork's pay tools from 1 July - Their tools, Pay and Conditions Guides and other information will be updated to the new minimum rates on 1 July. You can access the tools at Finding the right pay.
Apply change from first pay period on or after 1 July - The new rates don’t take effect until the first pay period on or after 1 July and should be shown on employees’ payslips.

How do I stay updated?

You can sign up for our Latest news RSS feed by clicking on the RSS button above. We will update our latest news section with important information about the minimum wage decision. Instructions on how to use RSS are available at RSS Alerts.

You can also now follow us on Twitter - @fairwork_gov_au for updates on the minimum wage changes, and other important workplace relations news.