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.

Calculating pay for certain purposes

Employees are entitled to a range of leave and other benefits associated with their employment. The rates of pay which apply to these benefits may be prescribed by one or more of statute, awards, enterprise agreements or the employee’s contract of employment.

See Calculating pay for certain purposes.

Payment for work performed

The FW Act deals with the frequency and methods of payment for the performance of work and allowable deductions from those payments. The object of these provisions is to prevent employers from engaging in modern forms of “truck” practices, such as making deductions from employees' wages where service station or restaurant customers leave without paying their bills.

See Payment for work performed.