NSW Farmers Industrial Relations Member Alert
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2.4% INCREASE TO MINIMUM RATES OF PAY

 

Background

  • The Minimum Wage Panel (the Panel) established under the Fair Work Act 2009 (the Act) is required to conduct and complete an annual wage review in each financial year.
  • The Panel determines variation to the minimum wages in modern awards and the national minimum wage order.
  • The minimum wages determination, that will become effective from 1 July 2016, was handed down by the Panel today, Tuesday 31 May 2016.

Summary of the decision

  • Minimum wages for each classification set out in the Modern Awards will receive an increase of 2.4%.
  • The national minimum wage will be increased to $672.70 per week or $17.70 per hour. Generally, employees should not be paid lower than this specified amount (unless the employee is a trainee or a junior).
  • Wage increases will be effective from the first full pay period on or after 1 July 2016.
  • Work related allowances will be adjusted by 2.4% (e.g. first aid allowance and leading hand allowances under the Pastoral and Horticulture Awards).
  • Expense related allowances (e.g. vehicle & travel allowance, meal allowance under the Pastoral Award) to be adjusted in accordance with CPI from March 2015 to March 2016 (figures will be confirmed and Awards adjusted over the coming weeks by the Fair Work Commission).

Our recommendations

  • We advise members (including those using piecework rates or who are employing trainees or apprentices) to review their current rates of pay for all Award covered staff.
  • For all NSW Farmers members this means that employees’ minimum wages will need to be adjusted effective from the first full pay period on or after 1 July 2016.
  • If you are not paying at least 2.4% above the Award minimum rates of pay for the relevant Award classification, you will need to increase your employees’ rates for ordinary hours of work effective from the first full pay period on or after 1 July 2016.

The assistance we provide

  • In the coming weeks, NSW Farmers will be issuing Rural Wage Guides on pay rates for classifications contained in the following awards:
    • Pastoral Award 2010
    • Horticulture Award 2010
    • Aquaculture Award 2010
    • Nursery Award 2010  
  • For specific pay rates from Awards not mentioned above, members are encouraged to call us for the relevant information.
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NSW Farmers Association
Level 6 35 Chandos Street St Leonards  NSW 2065
MSC: 1300 794 000   Fax: 02 8282 4500  Email: ir@nswfarmers.org.au

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