1.1.R.133 Relevant minimum wage (DSP, MOB, Partial capacity to work & CA)

Definition

For the purposes of DSP, MOB, partial capacity to work and CA, work that is at or above the relevant minimum wage is specifically defined in legislation.

There are different categories of employees and the relevant minimum wage for a person depends on the category under which a person is or would be employed. In effect, relevant minimum wages are wages lawfully paid to people in the open employment market.

For employees within the meaning of the Workplace Relations Act 1996, if a person is:

• a junior employee or a trainee, work at or above the relevant minimum wage means:
  • if Fair Work Australia has made a special National Minimum Wage that would apply to the junior employee or trainee - that wage, or
  • in any other case - a rate of pay under an Australian Pay and Classification Scale applying to the junior employee or trainee.
• not a junior employee or a trainee, work at or above the relevant minimum wage means the National Minimum Wage for the employee.

For employees within the meaning of Schedule 6 to the Workplace Relations Act 1996, work at or above the relevant minimum wage means award wages under the relevant transitional award.

In any other case, work at or above the relevant minimum wage means award wages.

Work that is at or above the relevant minimum wage does NOT include:

• pro-rata wages under SWS, other industrial agreement or special National Minimum Wage that allows for the payment of reduced wages to employees with a disability, based on their productivity, or
• wages paid at reduced rates under an exemption from the minimum rate of pay, special wage permit, or similar, because of the employee's disability.

Example: Employees participating in an Australian Disability Enterprise.

Act reference: SSAct section 16B Partial capacity to work, section 94(5) Definitions, section 1035A Qualification for mobility allowance (rate specified in subsection 1044(1A)), section 954A(1)(f) Qualification for carer allowance-caring for a disabled adult in a private home not shared by the adult and carer

Policy reference: SS Guide 1.1.P.56 Partial capacity to work (NSA, YA (job seeker), PP & SpB (NVH)), 3.6.1 DSP - Qualification & Payability, 3.6.6 MOB - Qualification & Payability

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Last reviewed: 6 September 2010