Andrew Tobin - Partner
The weekly minimum rate of pay for employees in the Federal workplace relations system will increase to $543.78 (or $14.31 per hour) from 1 October 2008. For employers in the Queensland industrial system, the Queensland Minimum Wage will increase to $552 per week (or $14.53 per hour) from 1 September 2008.
The Australian Fair Pay Commission (AFPC) recently handed down its latest decision to increase minimum rates of pay for employees in the Federal workplace relations system. The increase will take effect from the first pay period after 1 October 2008.
The AFPC has increased the Federal Minimum Wage and all Australian Pay and Classification Scales by $21.66 a week. This means the minimum weekly wage has increased to $543.78 (from $522.12) and minimum hourly rates have increased to $14.31 (from $13.74). These increases flow on to junior employees, employees with a disability, casual employees and employees receiving basic piece rates of pay.
The Queensland Industrial Relations Commission has also increased the Queensland Minimum Wage and minimum rates of pay for award covered employees in the Queensland industrial relations system. From 1 September, both the QMW and award rates will increase by $23.60 per week, taking the minimum weekly wage in Queensland to $552.00 (or $14.53 per hour).
Employers should ensure that, from the relevant date, all employees are paid at the minimum wage rate applicable to their circumstances, whether under a Federal pay scale, an applicable State award, or according to the applicable minimum wage. The impact on pay rates fixed by ongoing AWAs, ITEAs or collective agreements also needs to be assessed.
Failure to pay at the appropriate minimum rates (plus loadings and penalties where these apply) could result in prosecution by the Federal or State regulators, and liability for both wages unpaid and substantial penalties.
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