Minimum wage in Australia 2018

Are you in need of taking care of payroll as an administrator in Australia? Then you need to know that Australia follows the government-mandated minimum wage. Meaning, all employers in Australia should pay more than the mandatory minimum salary of pay.

So what is Minimum wage?  It is the lowest amount of money employees have to be paid when they work. It is a national-wide minimum salary regulation. To mention other country shortly, in the United States, only 19 states follow the federal minimum wage and the other states have different minimum wages.

(Click to see the U.S. Minimum Wage by state)

 

The Minimum Salary in Australia is $18.29 AUD per hour and $694.90 AUD per week for those employees who are more than 21 years old. The minimum wage varies depending on age, refer to the graph below.

 

minimum wage australia, minimum salary, by age info graphic payroll album time tracker clock in clock out clock time timesheet

 

Age : Percentage (%) Minimum hourly rate (AUD)
(a) under 16 years: 36.8% $ 6.73
(b) 16 years:   47.3% $ 8.70
(c) 17 years:   57.8% $10.57
(d) 18 years:   68.3% $12.49
(e) 19 years:   82.5% $15.09
(f) 20 years:   97.7% $17.86

The Fair Work Australia Commission sets the Minimum Wage federally and most employees are covered by a monetary award. A monetary award varies depending on the age, field of industry, and location. It last changed on 1st of January in 2017 and it will apply until 30th June 2018.

Also, when you manage employees in Australia, you have to follow an Individual Flexibility Arrangement (IFA) clause. It should include all incentives, awards, enterprise agreements and other registered agreements,. It’s an agreement between an employer and an employee to change the effect of specific clauses. The purpose of IFA is to balance alternative arrangements suitable for both the employee and the employer. The important thing is, it never applies to reduce or remove an employee’s  benefit or entitlement.

In conclusion, it’s managers’ responsibility to be aware that applying IFA in Australia. Managers need to keep in track of what the employees personal circumstances are. They need to know the financial and non-financial benefits are available and apply to the workers as well.

 

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