Each financial year a minimum wage panel within the Fair Work Commission (FWC), which was formerly known as Fair Work Australia, is responsible for reviewing and setting minimum wages for all employees under the national workplace system.


As part of the Fair Work Act 2009, the minimum wage panel will review the minimum wage order, current modern award minimum wages for all employees covered under Fair Work before a decision is made. This financial year, 2013-2014, the FWC has announced a decision for a 2.6 per cent wage increase, to the national minimum wage for all modern awards, which will come into effect from the first pay period starting on or after 1 July 2013.

The 1 July 2013 also reflects the next phase of the transitioning process in which the Australian work system is phasing out the old award and bringing into effect the Hair and Beauty Modern Award. This means all employers are required to re-calculate their wage rates to match not only the increase but the new penalty rates which will affect your salon. Salon owners will need to apply these new wage rates to the first full pay cycle in July.

Additionally, all employers must be aware that super obligations are changing. Employers will need to increase the compulsory superannuation payments made on behalf of employees from 9 per cent to 9.25 per cent. This will be the first increase of several increases which will occur over the next seven years. Employers should also be aware that super guarantee contributions must be made for all employees who are 70 years old or over.

As a salon owner it is vital that you implement the correct wage rates. Hair & Beauty Australia provide specialised advice on wage rates to suit their members individual salon requirements.

Visit www.hairandbeautyaustralia.com.au for further information.