Equal Remuneration Order - Award Pay Calculator

15th October 2013

For those of you that provide social and community services the impact of the Equal Remuneration Decision on the Social Community Home Care and Disability Services Industry Award is quite profound. Employees can expect to see regular increases to their minimum wage every six months for the next eight years.

However, the decision to phase in the increases ordered by the Commission has imposed an administrative burden on organisations that are covered by the award. The complexity of the formula to calculate the correct minimum modern award wage inclusive of the Order and the transitional provisions derived from pre-modern awards is almost a perfect storm for payroll staff. The Fair Work Ombudsman has developed a calculator that provides some relief from the burden of calculating the correct minimum rate.

You can download the Equal Remuneration Calculator from the Fair Work Ombudsman’s website.

I have tested the formula applied to calculate the minimum wages for accuracy. I am satisfied that the results are valid and consistent with the results that I obtain using spreadsheet formula that I have created for social welfare providers in NSW, VIC and TAS. The wages shown on the FWO calculator may vary slightly due to uncertainty in the estimated pre-modern wages and classification translations that are applied in the formulae and there are some gaps in data for 2013. Nevertheless, the FWO Equal Remuneration Calculator is a very useful tool and should save you time in payroll.

Note that the next Equal Remuneration Order phased increase to minimum wages occurs on the pay period beginning 1 December 2013.

If you need assistance or want a copy of the Maguire Consulting Equal Remuneration Order spreadsheets covering NSW, VIC and TAS providers please contact me.