[ Employment Law Tip ]
How to Find Out Your Applicable Minimum Wage
What Is a “Minimum Wage”?
A “minimum wage” is a protection provided to all employees working in Australia to ensure that certain standards of life and work are consistently upheld by law in all stages. It essentially stipulates the minimum amount an employee can be paid for work that they perform for an employer. Employers are therefore legally obliged to pay their employees an amount that is at least equivalent to the minimum wage.
However, “minimum wage” itself is a rather broad blanket term, as the applicable minimum wage will vary depending on the circumstances.
Sources to Refer to
The minimum wage that applies to you may be outlined within a Modern Industry Award, an Enterprise Agreement, or the National Employment Standards (“NES”). It is dependent on your occupation and employer.
Modern Industry Awards
Many occupations are covered by a Modern Industry Award. Determining the applicable Modern Industry Award to your circumstances involves a consideration of the industry in which your occupation itself belongs to, not the industry your employer is in.
There are more than 100 Modern Industry Awards, however each Award will generally stipulate different minimum wages for each classification of an employee covered by that Award. Classifications of employees are determined with respect to the specific duties or skill levels of an employee under the Award, and higher classifications will attract a higher minimum wage.
To determine whether there is a Modern Industry Award that applies to you, please refer to https://services.fairwork.gov.au/find-my-award.
Enterprise Agreements
Even if your occupation would ordinarily be covered by a Modern Industry Award, in certain instances, your employer may have a registered Enterprise Agreement with the Fair Work Commission. An Enterprise Agreement is an instrument which outlines the minimum terms and conditions of employment to be provided between one or a group of employers and their respective employees.
Where an Enterprise Agreement is valid and in force, it overrules any inconsistencies it may have with a Modern Industry Award that would usually apply. However, it should be noted that Enterprise Agreements cannot offer an overall lesser minimum condition of employment than Awards or the NES.
Current registered Enterprise Agreements can be searched and browsed through https://www.fwc.gov.au/agreements-awards/enterprise-agreements/find-enterprise-agreement.
National Employment Standards
Some occupations are not covered by a Modern Industry Award or an Enterprise Agreement. When this is the case, the minimum wage applicable will be that stipulated by the NES. As of 1 July 2022, the minimum wage in accordance with the NES is $21.38 per hour, or $812.60 per week.
