Legal Services Award – Minimum wage rise as of 1 July 2012

[Legal Service Award] October 26, 2012

Increase in the minimum wage
This year Fair Work Australia again adopted a uniform percentage increase. The increase in modern award minimum wages across all awards is 2.9%. The new minimum adult wage for a 38 hour week will be $606.40 per week or $15.96 per hour. The statement from Fair Work about the annual review can be found at http://www.fairwork.gov.au/media-centre/latest-news/2012/06/Pages/20120601-2012-minimum-wage-decision-released.aspx .

What does this mean for law firms?
You need to check that the wages you pay your staff are at least the minimum. For your reference, below is a link to a salary spreadsheet which calculates the impact of the 2.9% minimum wage rise for the Legal Services Award. The spreadsheed has been prepared for adult employees without any transitional rate calculations. There are four separate tables as staff work different weekly hours in firms. There are tables for employees working 38 hours per week, 37.5 hours per week, 36.25 hours per week and 35 hours per week. Minimum part-time wages can be calculated using the revised hourly rates.

Download the Salary Spreadsheet

For staff who are paid at the minimum rate this higher minimum rate must be paid to them from the first full pay period on or after 1 July 2012.

Junior employees must be paid the following percentage of the appropriate wage rate for role classification and their age. The following is from Clause 15 of the Legal Services Award.

Age

%

Under 16 years

45

16 years

50

17 years

60

18 years

70

19 years

80

20 years

90

The full Legal Services Award can be found at http://www.fwa.gov.au/documents/modern_awards/award/ma000116/default.htm .