Australia has a well-established minimum wage system designed to ensure fair compensation for workers. Governed by the Fair Work Commission, the minimum wage is regularly reviewed to maintain equitable pay standards across various industries and regions. In this article, you will learn more about the minimum wages in Australia for international students.

What is the Minimum wage in Australia?

Starting from July 1, 2023, the minimum wage in Australia stands at $23.23 for each hour worked, totaling $882.80 for a standard 38-hour workweek. This marks an 8.6% raise from the previous national minimum wage. This new wage rate takes effect from the first complete pay period commencing on or after July 1, 2023.

Minimum Wage in Australia for International Students

In accordance with guidelines set by the Fair Work Commission, the minimum wage specifically applicable to international students working in Australia begins at AUD 21.38. This translates to a fortnightly earning of $855.20 for these students. These rates reflect the commitment of Australian labor regulations to ensure fair compensation for international students contributing to the workforce.

Australia Minimum Wage Increase History

Dive into the data presented in the table, charting the progressive rise of minimum wages in Australia from 2007 onwards. The table below uncovers the changing patterns of pay rates over time.

Categorization of Minimum Wages in Australia

The Fair Work Commission categorizes the minimum wages in Australia with basic factors like employment types, qualifications, industries, and work capacities. Based on these factors they are categorized into three major types. They are:

1. Apprentice and Employment Pay rates
2. Employees with disability pay rates
3. Junior Pay rates

Get to know more about the updated Working Hours for International Students in Australia

Apprentice and Employment Pay Rates in Australia

Apprentice pay rates in Australia are determined based on specific criteria, including the type of apprenticeship and the level of training completed. Use the Pay and Conditions Tool to calculate pay rates for various types of apprentices, such as adult apprentices (those 21 years or older) and school-based apprentices (those still attending high school).

It's important to note that formal training contracts registered with state or territory training authorities are required for eligibility.

a. Pay Progression in Australia: Apprentices progress to the next pay level through either a time-based or competency-based approach. Time-based progression occurs after a specified duration (e.g., 12 months), while competency-based progression is tied to achieving a set portion of the apprenticeship's training requirements. The specific progression mechanism depends on the applicable award, which can be selected on the Apprentice entitlements page.

b. Post-Apprenticeship Pay in Australia: Upon completing an apprenticeship, individuals are entitled to receive pay rates equivalent to those of skilled tradespeople. The Pay and Conditions Tool assists in calculating these post-apprenticeship rates.

c. Trainee Pay Rates in Australia: Trainees in Australia have their pay rates determined based on factors such as the nature of their training and the award that covers them. Similar to apprentices, you can use the Pay and Conditions Tool to calculate trainee rates and determine which award applies. If covered by a registered agreement, the agreement's rates take precedence.

d. Different Types of Traineeships: Traineeships are divided into three types based on factors like age, hours of work per day, and industries. Here are the types,

• Full-time Trainee: Employed under a training contract for a standard 38-hour workweek.
• Part-time Trainee: Part-time traineeships are possible with the agreement of both the employee and employer. Duration and terms of part-time training contracts vary and should be verified with the relevant training authority.
• School-based Trainee: This type of traineeship allows high school students to simultaneously train for a qualification while completing their education.

e. Employer Advisory Service: The Employer Advisory Service (EAS) offers free tailored advice to eligible small businesses on pay and entitlement matters. The EAS assists in understanding National Employment Standards, award provisions, and other employee entitlements under the Fair Work Act. Small business employers can access this service to make informed decisions about workplace issues.

Employees with disability pay rates in Australia

Employees with disabilities are entitled to the same minimum wage as others, except when they fall under the Supported Wage System.

The Supported Wage System allows employers to create a customized pay structure based on the productivity of employees with disabilities. The system assesses an employee's work capacity to determine their pay rate.

The Department of Social Services provides eligibility and application details for the Supported Wage System. Employers interested in this system can find more information on the Job Access website.

Criteria for Supported Wage Payment: The Fair Work Commission of Australia states certain criteria for supported wage payment. They are:

• A supported wage can be paid if the award or agreement has relevant provisions and the employee is eligible.
• An eligible employee receives a percentage of the minimum pay rate based on their assessed work capacity.
• The minimum payment for employees under this system is $102 per week, applicable to casual and junior employees.

For accurate work capacity assessments and further details, qualified independent assessors play a vital role in these arrangements. It's important to note that employees cannot be paid less than $102 per week.

Junior Pay Rates in Australia

Juniors typically receive a percentage of the adult pay rate based on age, with increments on each birthday. This holds unless the relevant award, agreement, or enterprise arrangement lacks specified junior rates. In cases without such rates, juniors are compensated at the same level as adult employees.

1. National Minimum Wage for Juniors Not Under Agreements: Junior employees not covered by a specific award or agreement are entitled to a percentage of the National Minimum Wage. As of July 1, 2023, the National Minimum Wage is $23.23 per hour or $882.80 per 38-hour week. As an example, if Carly, a 17-year-old, earns 60% of the adult pay rate according to her award, her entitlement rises to 70% once she turns 18.
2. Special Rates for Alcohol-Related Work: In certain industries like hospitality and restaurants, juniors engaged in selling or serving alcohol may be subject to unique pay rates. These sectors, covered by the Hospitality and Restaurant Awards, mandate that juniors performing alcohol-related tasks receive the adult rate for their classification, regardless of their age.
3. Examples of Alcohol-Related Work: Tasks that trigger special adult rates for juniors include selling alcohol in casinos, serving seated customers in restaurants, pouring drinks, taking alcohol orders, delivering beverages, and handing out alcoholic drinks at registers.

Are you having an idea of pursuing an MBA in Australia, then get to know more about the Top 10 MBA universities in Australia

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