Increase to the minimum wage applies from 1 July 2017

Increase to the minimum wage applies from 1 July 2017

Last week the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling.

The FWC has awarded an increase of 3.3% to all adult full time weekly rates in the Modern Awards from the first pay period commencing (ppc) on or after 1 July 2017. Proportionate increases will flow to part time and casual workers.

The 3.3% increase results in the National Minimum Wage (NMW) increasing to $694.90 per week (or $18.29 per hour). Casual workers who remain ‘award free’ will have the casual minimum rate increased to $22.86 per hour from ppc 1 July 2017.

Here is the key action you’ll need to consider depending on your situation:

Enterprise Agreements

All businesses with enterprise agreements will need to ensure that the base rates of pay in their enterprise agreements are at least equal to the relevant rate in respective Awards as increased by the decision.

Individual Flexibility Agreements and Exemption Rate Salaries

All businesses with Individual Flexibility Agreements and Exemption Rate Salaries need to ensure that employees are “better off overall” when compared to the applicable Award comparison.

Over Award Paid Employees

Businesses who pay employees above the Award rate are not obliged to increase these employee rates but must ensure they are at least equal to or above the minimum applicable Award rate of pay following this increase.

Further advice and assistance

Workplace laws in Australia are some of the most complex in the world. We have access to a number of resources that can assist you in managing your employee wages and ensure you are fully compliant with workplace laws:

  • As a client of O’Connells we are able to submit HR queries on behalf of our clients direct to Workforce Guardian via their HR Advice platform. We are guaranteed of a response in writing within 2 business days.
  • If you require assistance with, or are interested in, outsourced payroll management, we highly recommend you contact Darren Farmer at Paymaster Services whose services we have been utilising ourselves for a number of years.

People are our most valuable (and costly) asset – so it’s important we ensure we’re all covered in the event of an incident.

If you do encounter a situation you’re not sure about, please feel free to contact us and we’ll connect you with the right person who will be able to assist you.