Penalty rate cuts to sap workers’ wages


Pharmacy and retail staff might be up to $4800 worse off a 12 months from a double whammy of penalty rate cuts and a delayed minimal wage improve.

Penalty charges for staff in these industries are due to be minimize by 15 per cent on Wednesday, the ultimate stage of greater than three years of staged reductions.

On prime of that the annual minimal wage rise of 1.75 per cent has been delayed till February 1 for pharmacy and retail staff.

Labor requested the Parliamentary Library to analysis the affect of the 2 Fair Work Commission choices.

The minimal wage freeze will price staff a minimum of $400 at $13 every week for 31 weeks.

When the cuts to penalties are factored in, a full-time pharmacy assistant who works Sundays and public holidays might take a $4800 annual hit to earnings.

Had the pre-February 2017 charges been maintained, the worker might have earned $54,600 over the 12 months in contrast to $49,800.

A full-time retail worker who works Sunday can be about $4300 worse off than they might have been below previous penalty charges.

An off-the-cuff retail employee can be about $2100 worse off in the event that they work each week.

Labor’s industrial relations spokesman Tony Burke stated penalty rate cuts made even much less sense throughout a recession.

“These are many of the same people who kept working through the height of the COVID-19 pandemic to ensure Australians could continue to get the things they needed,” he stated.

“They proved themselves to be essential, frontline workers in a time of crisis – and this is how we thank them?”

Mr Burke stated penalty charges weren’t a luxurious.

“They help people put food on the table and petrol in the car, particularly at a time when people are already suffering from reduced hours and chronic job insecurity.”

Last month, Labor launched evaluation of Australian Bureau of Statistics displaying a scarcity of job creation over the three years since penalties had been minimize.

The small enterprise foyer final 12 months conceded penalty rate reductions had not led to new jobs or further hours for staff.

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