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About annual wage reviews

On this page:

What is Fair Work Australia's role in minimum wage-setting?
The Minimum Wage Panel
What guides the work of the Minimum Wage Panel?
The annual wage review process
What are the current national minimum wages?
Future reviews and research
How do I found out what I should be paid?

What is Fair Work Australia's role in minimum wage-setting?

A Minimum Wage Panel (the Panel) in Fair Work Australia (FWA) is responsible for setting minimum wages for employees in the national workplace relations system.

The Panel is required to conduct and complete an annual wage review in each financial year. Under the Fair Work Act 2009, the Panel must review the national minimum wage order, modern award minimum wages and some transitional instruments. After its review it must make a national minimum wage order for award/agreement free employees and may vary modern award minimum wages and transitional instruments. This decision must come into operation by 1 July in the next financial year.

FWA conducted the Annual Wage Review 2009–10 between March and June 2010. Interested parties were invited to make submissions and participate in consultations. FWA handed down its Decision from this Review on 3 June 2010. The 2009–10 national minimum wage order and determinations varying modern awards, transitional Australian Pay and Classification Scale’s, Division 2B enterprise awards and State reference transitional awards come into operation on 1 July 2010.

The Minimum Wage Panel

The Fair Work Act 2009 delegates the minimum wage-setting functions of FWA to a Minimum Wage Panel headed by the President of Fair Work Australia and comprising six other members. The current membership of the Minimum Wage Panel is as follows:

Giudice J, President
Watson SDP
Harrison SDP
Raffaelli C
Mr Vines
Professor Richardson
Mr Dwyer

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What guides the work of the Minimum Wage Panel?

In conducting the annual wage review, the Panel must consider the provisions and objectives outlined in the Fair Work Act 2009.

This includes the 'minimum wages objective' (for national minimum wages and modern award wages) as well as the 'modern awards objective' (for modern awards).

The minimum wages objective and modern awards objective can be found in the Legislation section of the Annual Wage Review 2009–10 website.

The annual wage review process

In an annual wage review, the Panel under the Fair Work Act 2009 must make a national minimum wage order and review modern award minimum wages.

The Panel must also review and may vary transitional Australian Pay and Classification Scales, Division 2B State awards and State reference transitional awards.

As part of an annual wage review, the Panel is required by the Fair Work Act 2009 to ensure that all persons and bodies have a reasonable opportunity to make, and also comment on, written submissions for consideration in the review. The Fair Work Act 2009 also requires that all submissions are published unless the person or body making the submission claims it contains information that is confidential or commercially sensitive and FWA is satisfied with this claim. Submissions (including submissions in reply) which informed the Annual Wage Review 2009–10 can be found in the Submissions section of the Annual Wage Review 2009–10 website.

The Fair Work Act 2009 allows for investigations and reports for consideration in an annual wage review. All research undertaken for the purposes of an annual wage review must be published so that submissions can be made on the issues covered in that research. Research which informed the Annual Wage Review 2009–10 can be found in the Research section of the Annual Wage Review 2009–10 website.

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What are the current national minimum wages?

The Panel adjusted a number of wages in its Annual Wage Review 2009–10 Decision. This decision can be found in the Decisions & statements section of the Annual Wage Review 2009–10 website. These rates take effect from the first full pay period on or after 1 July 2010.

Modern awards and transitional instruments:

The Panel, in its Decision, increased all modern award minimum wages by $26 a week (based on a 38 hour week). Draft determinations varying modern award rates can be found in the modern award section of the Fair Work Australia website for review.

The Panel also increased all minimum wages in Division 2B enterprise awards, Transitional Australian Pay and Classification scales and state reference transitional awards by $26 per week (based on a 38 hour week).

National minimum wage order:

The Panel also decided to set the following wages for award/agreement free employees as part of the national minimum wage order (to take effect from the first full pay period on or after 1 July 2010):

A national minimum wage for award/agreement free employees at $569.90 a week (calculated on the basis of a week of 38 ordinary hours), or $15 per hour
A casual loading for award/agreement free employees at 21 per cent
A special national minimum wage 1 – set for award/agreement free employees with disability whose productivity is unaffected by their disability – set at national minimum wage rate ($569.90 per 38 hour week or $15 per hour)
A special national minimum wage 2 – set for award/agreement free employees with disability with affected productivity allowing employees to have a pro rata assessment using the Supported Wage System applied against the national minimum wage rate – ($ 569.90 per 38 hour week or $15 per hour)

A draft National Minimum Wage Order 2010 is now available on the Fair Work Australia website for review: Draft national minimum wage order.

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Future reviews and research

Research to be finalised after the Annual Wage Review 2009–10

All research currently being undertaken or commissioned by the Minimum Wage and Research Branch of FWA has been endorsed by a Minimum Wage Research Group.

The Research Group comprises a Chair from the Minimum Wages and Research Branch of FWA, and representatives nominated by:

Australian Chamber of Commerce and Industry (ACCI)
Australian Industry Group (Ai Group)
Australian Council of Social Service (ACOSS)
Australian Council of Trade Unions (ACTU)
Australian Government
State and Territory Governments.

Current research projects to be finalised after the Annual Wage Review 2009–10 are:

Development of a research framework and data strategy
Enterprise-level case studies
Review of productivity, business competitiveness and viability
Review of equal remuneration principles
Review of data on people earning below the transitional Federal Minimum Wage
Approaches to defining and measuring relative living standards and needs of low-paid employees
Industry profiles (Administrative and support services; Personal and other services)
Social research—Final report phases one and two, and
Apprentice wages.

Additional information about current and future research and reviews can be found in the Research section of the Annual Wage Review 2009–10 website.

The Annual Wage Review 2009–10 Decision also outlined some matters related to the forward research program to be conducted for future annual wage reviews.

Review of special national minimum wages for junior employees and employees to whom training arrangements apply

As part of its national minimum wage order 2010–11 the Panel will be required to set special national minimum wages for juniors and employees to whom training arrangements apply for award/agreement free employees.

This is in addition to determining a national minimum wage, a casual loading and special national minimum wages for employees with disability who are award/agreement free.

In the Panel’s Annual Wage Review 2009–10 Decision, the President indicated that a conference will be held in the second half of 2010 to consider the form of a review of special national minimum wages for junior employees and employees to whom training arrangements apply. This will include developing a timetable with the review likely to commence.

To be updated about the progress of this review, Subscribe to the annual wage review website.

Future research program

The Panel indicated in its Annual Wage Review 2009–10 Decision that it will give consideration to a research program as soon as practicable and invite interested parties to lodge proposals for research by 31 July 2010.

For the annual wage review 2010–11, the Panel will review the process and timetable over the rest of this year and announce a program in October 2010.

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