The past 10 years has highlighted that movement in Average Weekly Ordinary Time Earnings (AWOTE) are almost twice that of the movement in the Consumer Price Index (CPI).
On June 1st 2018 the Fair Work Commission increased the minimum wage by 3.5%.
The setting for a June/July Pay Review for those on the minimum wage, those on average weekly earnings, senior professional staff and organisation leadership, is about to become front and centre.
The Australian on April 14, 2018 reported that Tony Shepherd, a highly respected executive with significant engagement in the private and public sectors and Chairman of the Abbot government’s cost-cutting taskforce, recently questioned whether Federal public servants and politicians should enjoy a 15.4% employer superannuation contribution when other workers receive only 9.5%.
Criticism has erupted over suggestions by Labor that the planned increases in employer superannuation contributions from the current 9.5% to a targeted 12% by July 2025 should be accelerated.
Given the considerable discussion and public comment in relation to the equality of pay, there is merit in addressing the challenge faced by employers in endeavouring to be fair in rewarding their workforce.
A recent perspective offered by Bill Shorten, the leader of the Federal Opposition, has outlined an approach which Labor would consider supporting to improve the rewards available to those on the national minimum wage.
Over the past quarter there has been considerable comment on modest wages growth across Australia.
Boards shouldn’t consider the minimum wage decision as a factor in upcoming remuneration reviews without carefully considering the context of that decision.
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