STATE WAGE CASE 2008

The Industrial Relations Commission of New South Wales (the Commission) has announced its decision on wage increases for employees under State Awards.

The key points to note are:

There is no immediate pay increase. The decision only sets out the rules that are to apply.

The decision relates only to employees covered by State awards. Employers who are "constitutional corporations" covered by Federal legislation and employees covered by transitional Federal awards are not affected by this decision.

The Commission decided to grant a State Wage Case increase of 4.0 % per week to minimum award rates, and 4.0 % per week to the Award Review Classification Rate (ARCR) which results in a new ARCR of $552.70 per week for full time employees.

Work related allowances (such as shift allowances expressed as a monetary amount) and service increments may be increased by 4.0%. Allowances which reimburse for expenses (e.g. meals, tools, travel) may be adjusted to reflect any increase in the cost of such expenses.

This State Wage Case increase may be offset against:

equivalent overaward payments; and/or

award wage increases since 29 May, 1991 other than safety net, State Wage Case and minimum rates adjustments.

Unless there are special circumstances, increases will generally not be available until at least 12 months since the State Wage Case - 2007 increase was applied to the award. Any increase to wages and allowances do not apply until the Commission varies each individual award. Increases cannot be backdated. You will be informed when awards applying to your employees are adjusted.

New Minimum Wage

The Commission has introduced a new Minimum Wage provision. It will apply to those adult employees who are not covered by a NSW award or agreement, and who are not covered by the Federal system.

The NSW Minimum Wage will be equal to the ARCR, now $552.70 for full time employees and an equivalent amount for part time employees based on the ARCR divided by 38.

The NSW Minimum Wage does not apply to trainees, apprentices, employees on a supported wage or employees whose annual remuneration is greater than $106,400.

The NSW Minimum Wage has been introduced by an Order of the Commission which will be operative for six months from today, at which time the Commission will further consider any applications it has received on this issue.

Therefore any employers who operate in the NSW system and have employees who are not covered by a NSW award or agreement (ie. award free) and who are affected by the introduction of the NSW Minimum Wage should contact HR Services to discuss any difficulties which it may cause.