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Modern Award & High Income Threshold Increase – 1 July 2012

Better HR – Australia’s leading online employment relations service for employers

Fair Work Australia has announced that the country’s minimum wage workers will receive a pay rise percentage of 2.9%, starting 1st July 2012.

For adult employees who are not covered by a minimum award or agreement, the adult national minimum wage has increased from $589.30 to $606.40 per week, or $15.96 per hour.

Minimum rates payable to employees covered by Modern Awards have also increased. 

If you pay employees under Modern Awards or in accordance with the national minimum wage, you need to ensure the revised pay rates are implemented from 1 July 2012.

Also, please note that the High Income Threshold has changed to $123,300.  The High Income Threshold impacts unfair dismissal claim eligibility and  annual earning guarantees.

Individual Flexibility Agreements

For employers who have implemented Individual Flexibility Agreements (IFAs) or apply annualised salary arrangements, you will now need to reassess these agreements to ensure that employees are better off overall when compared to the applicable Modern Award.

HR & ER Expertise

As a subscriber to Better HR you can access all updated Modern Award pay rates from the service as and when they become available. If you are at all unsure how the increase in the minimum wage affects your employees, please make use of our “Ask an ER Expert” email service.


This article is intended to provide commentary and general information. It should not be relied upon as legal advice. Formal legal advice may be necessary in particular transactions or on matters of interest arising from this article. Better HR Pty Ltd ( is not responsible for the results of any actions taken on the basis of information in this article, nor for any error or omission in this article.