Supported Wage System

Most Australians who have a disability and participate in the open workforce do so at full rates of pay. However, there are some people who find it hard to obtain or keep a job at full wage rates because their disability affects their level of productivity.

The Supported Wage System is a process that allows employers to pay less than the award wage by matching a person's productivity with a fair wage. With the Supported Wage System, eligible people with disability can access a reliable process of productivity based wage assessment to determine fair pay for fair work.

Assistance for employers

Through the Supported Wage System, the Australian Government funds approved assessors to determine a worker’s productivity, with the resultant wage being paid by the employer. This means that there is no cost to you for the assessment.

If a person with disability is starting work in a new job, you may also be eligible to receive a one off payment to help offset the cost of employing that person.

The SWS operates within the normal state and federal industrial relations frameworks. The assessed productivity applies to the wage rate only. All other employment conditions, such as the length of annual and long service and access to training, apply according to existing conditions of employment. The assessed wage rate is also applied to any leave entitlements of the employee.

Assistance for eligible employees

Eligibility

A person is eligible to participate in the SWS if:

The job under consideration is covered by an industrial instrument or legislative provision which permits employment for pro-rata wages under the SWS; and

The person is an Australian citizen or is a person resident in Australia whose continued presence is not subject to a time limit imposed by Commonwealth law (e.g.: a temporary visa); and

The person is at least 15 years of age; and

The person has no outstanding worker’s compensation claim against the current employer; and

As determined by Centrelink, the person meets the impairment criteria for receipt of the Disability Support Pension (DSP). Further information can be found by visiting the Centrelink Website:Centrelink

The job is a minimum of 8 hours per week

Eligibility and Funding Procedures

These procedures are described as if a DEN member is involved, but they generally apply also where it is the employer who is arranging the supported wage employment.

The procedures assume the employee is currently receiving the DSP. Variations to the process for people who do not receive the DSP are at the end of this section.

Contacting the Supported Wage Management Unit (SWMU)

The employer or Employment Service Provider can contact the SWMU by phone for general information on SWS. The phone number is 1800 065 123

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The SWMU Processes the Application

The SWMU:

confirms the employee meets the impairment criteria (SWMU may contact Centrelink to confirm this);

checks the other eligibility criteria have been met; and

records the application as being approved.

Advice of Approval

The SWMU sends advice of an approval to the Employment Service Provider nominated to receive correspondence in relation to the employee (usually the DEN). Once this approval has been given, the employee can commence the SWS trial period.

An Assessor is arranged

The SWMU selects a SWS assessor to undertake the wage assessment and assigns an Order for Services;

The assessor accepts the work.

Work Begins on a Trial Basis

The workplace parties negotiate a trial wage. The trial wage must be at least the current minimum wage per week depending on the industrial provision that applies, but should ideally reflect the expected productivity levels for the trial period. The SWS trial period can only start once the SWS application has been approved by the SWMU.

Alternatively, the employee may be assessed and begin employment almost immediately if it is agreed by the workplace parties that a trial period is not required.

The Lead up to the Assessment

The assessor negotiates a suitable date and or time with the employee, employer and Employment Service Provider for the assessment to take place.

After the Assessment

After the assessment is agreed upon and signed, the employer sends the signed wage agreement form to the relevant industrial authority (Industrial Registrar or Workplace Authority) if required. The assessor may offer to do this on behalf of the employer.

If a union representative was not party to the wage agreement, the Industrial Registrar sends a copy of the Wage Agreement to the relevant union. If the union has not notified an objection to the Registrar within 10 working days, the Registrar then advises the employer and the SWMU that the wage agreement has been successfully filed.

The assessor always provides a copy of the Wage Assessment Agreement to the workplace parties (e.g. the employee, employer, the union representative if party to the agreement).

The Date for Beginning to Pay the Assessed Wage

The date when the employer can legally pay the agreed pro-rata award wage is the date when the wage agreement is signed. The employer should pay the agreed wage rate from this date and does not have to wait until notification has been received from the industrial authority that the wage agreement has been filed.

Review Date Negotiated

The employee, assessor and employer negotiate for a review date to be set within 12 months from the operative date of the wage agreement. An earlier review date may also be negotiated. Should the parties subsequently determine that this earlier review is unnecessary, the original agreement will remain valid for 12 months, by which time a review will take place.

Funded by the Department of Education, Employment & Workplace Relations (DEEWR)