1.1.N.10 National minimum wage order

Definition

'National minimum wage order' has the same meaning as in the Fair Work Act 2009.

Under the Fair Work Act, a national minimum wage order means a national minimum wage order made in an annual wage review. The Fair Work Act requires Fair Work Australia to conduct and complete an annual wage review in each financial year.

The national minimum wage order comes into operation as provided for under Fair Work Act section 287.

For the purposes of the PPLAct definition, the national minimum wage is taken to be the wage set by the national minimum wage order for employees in relation to whom no exceptional circumstances exist.

To clarify, the NMW amount for a PPL or DAPP day is the same for all people and is not affected by Fair Work Act section 294, which provides for special NMWs for junior employees, employees to whom training arrangements apply and employees with disability.

Fair Work Act subsection 287(5) provides that the national minimum wage order comes into operation on 1 July, but does not take effect in relation to a particular employee until the employee's next payday. However, for PLP or DAPP purposes, the national minimum wage order takes effect from 1 July. This means that the national minimum wage order in operation as at 1 July affects the rate of PLP or DAPP on 1 July if it is a week day, or on the following week day if 1 July is a Saturday or a Sunday.

If a determination is made to vary a national minimum wage order and the determination comes into operation on a day that is earlier than the day the determination is made, the determination is taken to come into operation on the day the determination is made. Any such variation would therefore not affect the daily NMW amount retrospectively, regardless of the date of operation specified in the order.

Act reference: PPLAct section 6 The Dictionary, section 65 The amount of an instalment

Policy reference: PPL Guide 3.1.1 PLP - Current Rate, 3.1.2 DAPP - Current Rate

Last reviewed: 20 September 2016