The Expert Panel of the Fair Work Commission (FWC) handed down its Annual Wage Review decision on the 30th of May that increased adult minimum wages in all modern awards by 3%.
Members need to be aware that the increase is operative from the start of the first full pay period commencing on or after 1 July 2019.
The full-time adult minimum wage at Group Wage Level (R1) in the Vehicle Award increases to $740.80 per week ($19.49 per hour), an increase of $21.60 per week. The full-time tradesperson’s rate at Group Wage Level (R6) in the Award increases from $837.40 per week ($22.04 per hour) to $862.50 per week ($22-70 per hour), an increase of $25.10 per week.
Subsidiary junior, apprenticeship and traineeship rates, have also been adjusted, as appropriate, under previously established methods in modern awards. Increases in wage-related allowances in awards are also automatically be adjusted as a result of the increase.
Members are now able to access the updated wage schedules reflecting the new wage rates and allowances in relation to the Vehicle Award and the Clerks Award on the MTA’s website by clicking here and logging in.
As in previous years, employers paying above award wage rates will have the ability to absorb the wage increase, if the rates being paid are sufficiently above the award rates.
Members who review their wage structures or contracts at this time of the year, can also consider the absorption of miscellaneous payments payable under the award such as annual leave loading, allowances, and other such payments, into any over-award wage rates. However, it is important that members have the appropriate documentation to incorporate this into their employment contracts. Members interested in discussing this further can contact the Workplace Relations Department of the MTA by clicking here.