Minimum weekly wage increases to $606.40

The National Minimum Wage will be increased by $17.10 a week following a decision handed down by Fair Work Australia’s specialist Minimum Wage Panel. The decision will further assist low-income working families to manage cost of living pressures.

The national minimum wage will increase to $606.40 a week or $15.96 per hour from July 2012. This means that from the first full pay period on or after 1 July 2012, minimum weekly wages are increased by 2.9%, with commensurate increases in hourly rates on the basis of a 38-hour week.

The decision will benefit more than 1.36 million Australians who rely on awards to set their pay. The increase applies to minimum wages for junior employees, employees to whom training arrangements apply and employees with disability, and to piece rates through the operation of the methods applying to the calculation of those wages.

Under the Fair Work Act, the National Minimum Wage has increased 4.1% in real terms.The Australian Government, in its submissions to the independent panel, asked for any increase to the National Minimum Wage and award wages to be reflective of changes in living costs.

More information about the new pay rates for each modern award will be available shortly at www.fairwork.gov.au or by calling the Fair Work Infoline on 13 13 94.