The Workplace Relations Act 1996 identifies two primary functions for the Commission:
(i) wage-setting; and
(ii) promoting public understanding of matters relevant to the Commission’s functions.
These functions are underpinned by the core values of independence, openness, honesty, transparency and fairness.
Wage-setting function
In relation to its wage-setting function, the Commission:
- adjusts the standard Federal Minimum Wage;
- adjusts special Federal Minimum Wages for employees with a disability;
- adjusts basic periodic rates of pay and basic piece rates of pay payable to employees of particular classifications, including junior employees and employees to whom training arrangements apply; and
- adjusts casual loadings in Pay Scales.
In fulfilling this function, the Commission must have regard to the following four key criteria:
- the capacity for the unemployed and low paid to obtain and remain in employment;
- employment and competitiveness across the economy;
- providing a safety net for the low paid; and
- providing minimum wages for junior employees, and employees to whom training arrangements apply and employees with disabilities that ensure those employees are competitive in the labour market.
The Commission conducts annual wage reviews and announces its decisions in July, with an implementation date in October.
Promoting public understanding function
The Commission’s other primary function is to promote public understanding of matters relevant to its functions.
Under the direction of the Commission, the Australian Fair Pay Commission Secretariat undertakes programs and initiatives to fulfil this function, such as:
- public speaking engagements to discuss the Commission’s role and functions and to articulate the reasons for its decisions;
- making information available over the internet and in printed format about the Commission, its reviews, decisions and consultation, submission and research processes;
- publishing reports that monitor the impact of the Commission’s decisions; and
- commissioning surveys to measure benchmark levels of awareness of the Commission in the Australian community.