Australia: Australian Fair Pay Commission Decision

On 7 July, The Australian Fair Pay Commission made its fourth and final minimum wage determination. The next minimum wage determination will be made by the Minimum Wage Panel of Fair Work Australia.

The Australian Fair Pay Commission has decided not to increase federal minimum wage levels, maintaining them at the current level of $543.78 per week. The rates of pay within Australian Pay and Classification Scales will not be changed.

In making it's decision, the Commission took into account factors such as the outlook for the economy and labour market, competitiveness of employment across the economy and the capacity for the unemployed and low paid to obtain and remain in employment. In doing so, the Commission highlighted the need to be cautious in what it described as "challenging times for the Australian labour market" and stated that "it considers its decision will both protect jobs in the short term and better support a speedy recovery in employment in the medium term". It also expressed the view that whilst it had to have regard to providing a safety net for the low paid, low-paid households had recently benefited from changes to the tax/transfer system as well as the government's economic stimulus packages.

Although the Australian Fair Pay Commission did not increase minimum wage levels, employers should continue to monitor the progress of award modernisation by the Australian Industrial Relations Commission, as pay rates will be contained in modern awards, which are scheduled to commence from 1 January 2010 ( click here to read our award modernisation update). Employers are also reminded that under the Fair Work Act, employers, including those who are parties to pre-Fair Work Act workplace agreements, will be required to ensure they are paying the base rates of pay contained in those modern awards.

If you have any questions about the Australian Fair Pay Commission's decision, and its impact to your business, please contact one of the gadens lawyers' workplace relations team.

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