After much deliberation and consultation with numerous organisations, the FWC increased the national minimum wage by 3.5%, benefitting approximately 2.3 million employees in the Australian economy. Although the increase is less than the recommendation from the Australian Council of Trade Unions, this is the largest handed down by the Fair Work Commission so as to not discourage employment growth. In the past decade, minimum wages have risen in total by 5.8%.
The 3.5% increase will increase the minimum adult rate to $18.93 per hour, or $719.20 per week based on 38-hour full-time employment, constituting an increase of $24.30 per week.
What does this mean for employers?
All minimum wage rates in Modern Awards will increase by 3.5%, with updated pay guides to be released before the beginning of July.
Employee’s whose pay is determined by a collective agreement may also need their pay rates reviewed to ensure that this is in line with the minimum wage in accordance with the National Employment Standards (NES).
As these pay changes will be effective in the first full pay period beginning or after the 1st of July 2018, employers must ensure pay rates are updated.
How can Payroll HQ help?
Clients of Payroll HQ are in safe hands and will enjoy a hassle-free End of Year period, as our fully qualified and experienced staff manage all End of Year processes, allowing you to focus on what you do best.
To find out more about the Payroll HQ difference, please contact us.
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