National Minimum Wage increase-Fair Work Commission Annual Review

The Fair Work Commission (FWC) has announced a 3.3% increase to minimum wages. From the first pay period commencing on or after 1 July 2017, the National Minimum Wage will increase to $694.90 per week, or $18.29 per hour. Employers should take a number of steps to ensure they comply with their post-1 July 2017 minimum wage increase obligations.

The FWC’s decision constitutes an increase of $22.20 per week to the 2.3 million employees who are reliant on minimum rates of pay set by an award.

Businesses with employees covered by any Modern Award (or who pay employees at the National Minimum Wage) are required to apply the new rates from the first full pay period on or after 1 July 2017. It’s important to also review allowances in applicable respective Modern Award as these are calculated as a percentage of a standard rate and therefore increase accordingly.

Employers with an Enterprise Agreement should review base rates of pay to ensure these remain at least equal to the new Modern Award rates.

Businesses utilising Individual Flexibility Agreements and annualised salary arrangements under the respective Modern Award should review these arrangements to ensure employees remain better off overall when compared to the new rates in the Award.

The link to the Fair Work Ombudsman’s media release on the 2017 Annual Wage Review is available at:

https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/get-set-for-a-3-3-increase-to-minimum-wages-2017-annual-wage-review