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ARTICLE · 27 JULY 2011

Modern award rates - are you compliant?

Cooper Grace Ward
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Modern awards contain transitional provisions which allow employers to phase in minimum rates of pay and penalties.

AustraliaEmployment and HR
Belinda Winter
Belinda Winter
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Modern awards commenced on 1 January 2010. Most modern awards contain transitional provisions that allow employers to phase in minimum rates of pay and certain penalties and loadings (Rates) over a four year period from 1 July 2010 to 30 June 2014.

The transitional process has caused much confusion for employers and has resulted in many employees being underpaid or overpaid. To assist employers with the transitional process, set out below is a step by step guide to calculating transitional Rates. The transitional Rates will apply to all national system employees regardless of whether they were employed by the employer before 1 January 2010.

Calculating minimum rates of pay

The transitional minimum wage rates between 1 July 2010 and 30 June 2014 are calculated as follows:

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