The Decision:


Importantly, the “transitional” phasing in of wage and penalty arrangements also ends this year, so from the first pay period on or after 1 July 2014 all wage rates and penalties will need to match the applicable Modern Award rates.

What this means for you:

  1. Employers who pay their employees at the National Minimum Wage or Modern Award rates of pay will need to apply the increase in the first full pay period on or after 1 July 2014;
  2. Employers who currently pay above National Minimum Wage or Modern Award rates of pay are not obliged by this decision to increase their rates of pay, but need to ensure their rates remain at least as beneficial, once the increase is applied; and
  3. Employers who pay under enterprise agreements should ensure that the base rates in those agreements remain at least equal to the new minimum Modern Award rates.

Annualised Salaries and Individual Flexibility Agreements:

  • If you have implemented Individual Flexibility Agreements, you will need to reassess those agreements to ensure employees remain “better off overall” when compared to the newly increased Modern Award rates.
  • If you pay any of your employees under annualised salary arrangements you will need to conduct an audit of those annualised salaries against the new rates and working patterns to ensure the annual salary compensates for award entitlements.

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