Minimum wage has increased

From 1 April 2016, the adult minimum wage will go up to $15.25. The starting-out and training hourly minimum wages rates will also increase to $12.20 per hour from 1 April 2016.

There are three minimum wage rates:

• The adult minimum wage applies to all employees aged 16 and over who are not starting-out workers or trainees, and all employees who are involved in supervising or training other employees.
• The starting-out wage applies to starting-out workers. Starting-out workers are:

o    16- and 17-year-old employees who have not yet completed six months of continuous employment with their current employer.

o    18- and 19-year-old employees who have been paid a specified social security benefit for six months or more, and who have not yet completed six months continuous employment with any employer since they started being paid a benefit. Once they have completed six months continuous employment with a single employer, they will no longer be a starting-out worker, and must be paid at least the adult minimum wage rate.

o    16- to 19-year-old employees who are required by their employment agreement to undertake industry training for at least 40 credits a year in order to become qualified.

• The training minimum wage applies to employees aged 20 years or over who are doing recognised industry training involving at least 60 credits a year as part of their employment agreement, in order to become qualified.

For employees aged under 16

There is no minimum wage for employees aged under 16 but all other employment rights and entitlements still apply. When looking at whether an employee who is 16 years or older is a starting-out worker, any time spent employed by an employer before the employee turned 16 must be included when calculating the time that employee has been continuously employed.

You can’t be paid less than minimum wage

Employers and employees may agree to any wage rate as long as it is not less than the applicable minimum wage rate. Starting-out workers must be paid at least the minimum starting-out wage rate, and trainees over 20 years of age must be paid at least the training minimum wage rate.

A small number of people hold an exemption from the minimum wage. Please CONACT US to discuss how to obtain an exemption.

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