Fair Work Commission’s minimum wage panel released its 2013 Annual Minimum Wage Decision on Monday, 3 June 2013, signifying an increase in both the minimum wage and superannuation rate.

The FWC decision increases the national minimum wage to $622.20 per week, or $16.37 per hour. This constitutes an increase of $15.80 per week or 41 cents per hour being the equivalent of a 2.6% minimum wage increase. All award rates of pay will increase by 2.6% with effect from the first pay period commencing on or after 1 July 2013

One of the reasons cited by the FWC’s panel for a lower-than-expected increase was the concurrent increase in the superannuation guarantee rate, which will be 9.25% from 1 July 2013.

Who is affected?

The 2013 Minimum Wage Decision applies to all employees covered by the national workplace relations system. The decision increases pay rates for:

• minimum wage and modern award employees;
• all transitional Australian pay and classification scale employees;
• state reference transitional award employees;
• and division 2B state enterprise award employees.

The decision will not apply to:

• employers who are sole traders and partnerships in Western Australia;
• corporations in Western Australia whose main activities are not trading or financial;
• state government public sector employers and employees (except in Victoria); and
• some local government employers and employees.

If an employee is paid above the relevant modern award base rate of pay, provided an employee’s over-award payment still results in them being paid at least the new base rate of pay, the employer will be considered to have met their obligation with respect to the minimum wage increase.

What employers need to do

Employers have a legal responsibility to ensure that all of their employees are paid at least what they would receive under a modern award, registered agreement or national minimum wage order. We recommend a review of your payroll obligations to ensure you are meeting your responsibilities in readiness for 1 July 2013.

Should you require any assistance in reviewing your payroll obligations or if you have any questions about this wage review and its impact, please contact us.

Andrew Gordon, Solicitor, BlandsLaw