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- Minimum wages
Minimum wages in the national system
Minimum wage entitlements under the national system are usually set out in modern awards and enterprise agreements. The minimum wage for employees who are not covered by an award or agreement is prescribed by the National Minimum Wage Order (NMWO).
The NMWO and modern award wage rates are determined by a specialist panel of the Fair Work Commission (FWC) and are reviewed annually (Annual Wage Review).
Wage rates in enterprise agreements are agreed between the parties to the agreement. During the life of an enterprise agreement wage rates will be adjusted in accordance with the terms of the agreement. However, if the enterprise agreement wage rates fall below the level set out in the otherwise applicable modern award or the NMWO, those higher rates will apply.
Employees must be paid at or above the minimum wage. If they are paid less, action may be taken to recover the underpayment and the employer may be liable to a penalty and the imposition of other orders under the Fair Work Act 2009 (Cth) (FW Act).
See Minimum wages in the national system.
