The Fair Work Commission has lifted the minimum wages for all Australians from $656.90 a week or $17.29 an hour to $672.70 a week or $17.70 an hour. It increases our Wallets by adding $15.80 more per week. Approximately 2 million people who are on the minimum wage will receive the increase from July 1. The commission stated that a generally robust economic climate provided the opportunity for a modest increase to Australia’s lowest-paid workers. They said that labor market conditions had been stronger over the past year, apart from the fact that inflation and wages growth was at historic lows.
The modifications were welcomed by all relevant parties
The commission found out that the relative position of low paid workers had deteriorated over the past decade, and that some were living below the poverty line. Last year, the commission lifted the minimum wage by 2.5 %. Secretary of Australian Council of Trade Unions, Mr David Oliver said the union welcomed the increase but said it wasn’t effective enough. “If you take into account the inflation rate it delivers a real wage increase of just over 1 %,” “So for a minimum wage earner, that’s something a little over $6 a week.” As a part of the annual wage review, the ACTU had pushed for a national minimum wage lift to $686.90 a week, or $18.07 an hour.
The Process of determining Minimum wage.
Minimum wage is an employee’s base rate of pay for ordinary hours worked for an employer. It is dependent on the industrial instrument that applies to their employment. E.g., a modern award or registered agreement, employers and employees cannot be paid less than the minimum wage, even if they agree to it. Every year, the Fair Work Commission’s (FWC) Expert Panel reviews the minimum wages received by employees in the national workplace relations system. They consider the written submissions from interested organizations and individuals after intense consultations before the Expert Panel. At the conclusion, a national minimum wage order is made which applies from the pay period on or after the 1st of July each year. Most employees in the national workplace system are covered under this system. This contains minimum wage, as well as other terms and conditions, for employees in particular industries and occupations.
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