Minimum Wage Increase

Minimum Wage Increase

Minimum Wage – From 1st April 2009
There are three groups to calculate minimum wages for. These are the ‘Adult Minimum Wage’, ‘New Entrant’s Minimum Wage’ and ‘Training Minimum Wage’.

Adult Minimum Wage
This applies to all workers who are 16 years old and over who are not new entrants or trainees. The adult minimum wage increases from $12.50 per hour to $12.75 from April 1st 2010.

New Entrant’s Minimum Wage
This applies to employees aged 16 or 17 years who have completed fewer than 200 hours or 3 months of employment, whichever is shorter and who are not supervising or training other workers. An employee will not be a new entrant if they are a trainee who is subject to a training minimum wage. The new entrant’s minimum wage is increasing from $10.00 per hour to $10.20 from April 1st 2010.

Training Minimum Wage
This applies to employees aged 16 or over who are required by their employment agreements to undertake at least 60 credits a year of a recognized industry training programme. The training minimum wage is also increasing from $10.00 per hour to $10.20 effective from April 1st 2010.

Additional Information Regarding Minimum Wage

There is no set rate for employees under 16 years old.
The rates are gross before tax.
Holiday pay must be paid in addition to the minimum wage.

There are serious ramifications for breaches of Minimum Wage requirements (and holiday pay) and Labour Inspectors (Labour Department) have the power to issue demand notices if:

  • An employee complains and the Inspector believes the employee has not received wages or holiday pay;
  • Where the employer has been given a 7 day notice to comment on the complaint and the Inspector is satisfied the employee is entitled to the wages or holiday pay.

Labour Inspectors can enter the employer’s premises under the provisions of the Act, interview people and require copies of wages, time and holiday records.

Employers who fail to comply with any ‘requirements’ of Inspectors face penalties under the Act.

For further information, please go HERE!

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