Fair Work Commission

Our role in minimum wage-setting

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The Fair Work Commission is responsible for reviewing and setting minimum wages for employees in the national workplace relations system.

Each financial year the Commission's Expert Panel for annual wage reviews conducts an annual wage review, and issues a decision and national minimum wage order for employees not covered by an award or agreement. The decision and order generally come into operation on 1 July of the following financial year.

The annual wage review directly affects employees in the national system who are:

• covered by a modern award or a transitional instrument, or
• not covered by either an award or an agreement.

The annual wage review process

Conducting the review

The annual wage review is generally conducted in the second half of the financial year, from March to June.

The process involves:

• written submissions from interested organisations and individuals
• consultations before the Expert Panel
• research commissioned by the Expert Panel.

In conducting the annual wage review, the Expert Panel is required under the Fair Work Act 2009 (the Act) to review:

• minimum wages in modern awards and transitional instruments, and
• the national minimum wage order from the previous annual wage review.

Submissions & comments

The Expert Panel must make sure that all persons and bodies have a reasonable opportunity to make, and also to comment on, written submissions for consideration in the review.

The Act requires all submissions to be published (unless the submission contains information that is confidential or commercially sensitive). This helps make sure that that any interested parties have a reasonable opportunity to make, and comment on, written submissions.

Research

The Act also allows for investigations and reports for consideration in an annual wage review. All research undertaken for the purposes of an annual wage review must be published so that submissions can be made on the issues covered in that research.

The result

At the end of the review the Expert Panel will issue its decision. This will be followed by the publication of determinations changing the minimum wage rates in modern awards, and a national minimum wage order for employees who are not covered by an agreement or award.

The Expert Panel for annual wage reviews

The Act provides for annual wage reviews to be conducted by an Expert Panel of the Commission.

The Expert Panel is made up of the President, three other full-time members and 3 part-time members.

The part-time members' sole function is to work on the annual wage review. Such members must have knowledge of, or experience in, one or more of the following fields:

• workplace relations
• economics
• social policy
• business, industry or commerce.

The full-time members of the Expert Panel are chosen by the President from the full-time members of the Commission.

What the Expert Panel must consider

In conducting the annual wage review, the Expert Panel must consider the provisions and objectives outlined in the Act, in particular Part 2-6 which deals with minimum wages including the conduct of annual wage reviews.

The Expert Panel must consider both the 'minimum wages objective' (s.284) and the 'modern awards objective' (s.134).

The Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 also requires the panel to review a number of transitional instruments.

Research

Research for the annual wage review is undertaken or commissioned by the Workplace and Economic Research Section of the Commission, and endorsed by a Minimum Wages Research Group.

The Research Group is made up of a chair from the Workplace and Economic Research Section and representatives nominated by:

• the Australian Chamber of Commerce and Industry
• the Australian Industry Group
• the Australian Council of Social Service
• the Australian Council of Trade Unions
• the Australian Government, and
• State and Territory Governments.

How do I find out what I should be paid?

For information about your wages and pay rates, go to the Minimum wages page on the Fair Work Ombudsman's website.