Sector Pay Rise - ‘Letters of Offer in the Mail’

The Federal Government has sent out letters of offer to Not for Profit organisations funded by the Commonwealth detailing the amount of additional funding they are entitled to as part of the Fair Work Australia pay decision for community sector workers.

About 150,000 of some of Australia’s lowest paid workers will benefit from regular pay rises following the first Equal Remuneration Order handed down by Fair Work Australia (FWA) early in September.

The decision will deliver pay rises of between 23 and 45 per cent to Australia’s lowest paid workers, of which 120,000 of these are women. The first wage increase is due on December 1, 2012.

The Australian Government supported the case being brought before Fair Work Australia, and committed $2.8 billion in funds that are set aside in the SACS Special Account.

Federal Ministers Jenny Macklin and Brendan O’Connor have encouraged organisations to sign and return documents to Funding Agreement Managers as soon as possible, so that the Australian Government can pay its share of the costs of the wage increases.

“The Australian Government has calculated supplementation amounts using a robust process, including testing with the sector. However, there will be an opportunity for organisations with unique cases to have their offers reviewed,” the Ministers said.

“The supplementation amount organisations will receive is based on the size of the grant and the equal remuneration order increase in an organisation’s state or territory.

“For organisations that receive funding through Commonwealth-State Agreements, the Australian Government is continuing to work collaboratively with all state and territory governments to ensure a smooth implementation of the equal remuneration order."

For more information about the review process visit FaHCSIA’s website.