Victorian Sick Pay for Casuals.
Some casual workers in Victoria will be the first to receive sick leave, as part of a two year trial.
An estimated 150,000 workers will be eligible for up to five days of paid sick leave per year during the two-year trial, under the Victorian Sick Pay Guarantee program.
It will be paid at the national minimum wage of $20.33 per hour, not at the higher rate of $25.41 that casuals receive.
The national minimum wage is currently $20.33 per hour for permanent workers.
Casual employees also get at least a 25% casual loading to cover the Sick and Holiday pay that casual workers are not entitled to. This works out at a minimum of $25.41 per hour.
The extra $5.08 per hour is effectively an advance payment of sick and holiday pay.
Permanent Employee
A permanent worker on the minimum wage, that does 20 hours per week for a year, but has 4 weeks holiday, and 5 days sick during that year would earn 52 weeks x 20 hours = 1,040 hrs at $20.33 = $21,143
Casual Employee – current terms.
A casual worker on the minimum wage, that also does 20 hours per week for a year, but has 4 weeks holiday, and 5 days sick during that year would earn 47 weeks x 20 hours = 940 hrs at $25.41 = $23,887
Currently a casual worker on those hours would get $2,744 more than a permanent worker that does exactly the same hours, and has the same holiday and sick leave.
Casual Employee – new terms.
Under the new system, the casual employee would earn 47 weeks x 20 hours = 940 hrs at $25.41 = $23,887, plus 5 days of the new sick pay; 20 hours at $20.33 = $406 giving a total of $24,293 for the year.
Under the new system, a casual worker on those hours would get $3,150 more than a permanent worker that does exactly the same hours, and has the same holiday and sick leave.
A much greater incentive to work casual than to be a permanent employee?