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2019 wage review provides 3% increase to minimum wage rates

2019 wage review provides 3% increase to minimum wage rates

In its 10th annual Minimum Wage Review, the Fair Work Commission has announced that the minimum rates under modern awards will be increased by 3%.

 

Modern award rates of pay

Minimum wage rates in modern awards will be increased by 3% with weekly rates rounded to the nearest 10 cents. This will take, for example, the new minimum rate of pay for Real Estate Employee - Level 2 to $862.50. This is an increase of $25.10 per week.

The increased wage rates are operative from the first full pay period commencing on or after 1 July 2019.

Under most awards, junior employees receive a percentage of the minimum award rate of pay. As a consequence, these employees will also receive a proportion of the increase in minimum rates.

Employees to whom a training arrangement applies and who are covered by the National Training Wage Schedule within a modern award will have their rate adjusted by 3%.

 

Allowances

Modern awards provide that an increase to expense related allowances must be considered at the time of an adjustment to the standard rate in the award.

To determine the extent of any increase, the relevant adjustment factor is the percentage movement in the applicable index figure most recently published by the Australian Bureau of Statistics since the allowance was last adjusted.

The Fair Work Commission will publish draft determinations concerning increases to expense related allowances shortly.

 

Absorption of above award payments

Members who are paying an employee a rate of pay in excess of the award minimum are able to absorb the 2019 minimum wage increase into those above award payments, so long as the employee continues receiving a wage equal to or above what they are entitled to receive under the applicable modern award.

 

Your new wage rate booklet

In keeping with our usual practice, REEF will produce a revised wage booklet once we have calculated and reviewed the increases that apply to specific classifications under the two awards applicable to our industry.

While we will be making every effort to have this booklet posted to you by the operative date of 1 July 2019, given the complexities and logistics associated with the exercise, it may not be received until after this date.

To help members prepare for the operative date of increases on 1 July 2019, we will upload the new wage rate schedules as soon as possible to the People Management System. When this happens, we will notify you immediately.

 



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About REEF

The Real Estate Employers' Federation is the real estate industry’s leading not-for-profit employer and workplace relations advisory association. It has more than 1600 members and subscribers across Australia.

Each year, REEF receives more than 15,000 calls from real estate employers needing help and guidance on matters affecting the employment relationship.

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