A minimum wage is an employee’s base rate of pay for ordinary hours worked. It is generally dependent on the industrial instrument that applies to their employment, for example a modern award or registered agreement. Employees cannot agree to be paid a lower rate than their applicable minimum wage, even if they agreed this with their employer.
The Australian National Minimum Wage is the base rate of pay for an employee who is not covered by a modern award or agreement. The National Minimum Wage is reviewed annually by the Fair Work Commission’ Expert Panel, with a national minimum wage order to be applied from the first full pay period on or after 1 July each year.
Australia’s current minimum wage (as at 1 July 2018) is $18.93 per hour or $719.20 per 38 hour week (before tax). Casual employees covered by the national minimum wage also get at least 25% casual loading.
There are minimum wages in place for certain employee groups such as apprentices, trainees and those working with a disability. Please visit the Fair Work Ombudsman’s website for relevant and up-to-date pay rates:
more articles about: pay and reward
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- employed or self-employed?
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- working outside Australia
- key dates for your tax diary
- workers compensation insurance premiums
- trends and predictions for pay and reward
- principles of rewarding employees
- different generations – different motivations
- fringe benefits tax
- taxing the benefits of vehicles
- employers’ responsibility for tax and superannuation
- establishing the right reward system
- overtime, penalty rates and loadings
- pay: not the only reward