Minimum wages increased by 3.5%
The national minimum wage will be lifted by 3.5 per cent – as announced by the Fair Work Commission last week. This change will directly affect around 1.5 million Australians on award wages.
From the first pay period commencing on or after July 1 2018, the minimum wage is increasing to $719.20 per week, or $18.93 per hour.
The Fair Work Commission’s Minimum Wage Panel conceded that the prevailing economic conditions were positive, and that the increase would have a noticeable positive effect on the low paid.
What this means for you:
- Modern Award rates used for internal and external on-hire staff will increase to comply with this decision.
- Individual Flexibility Agreements will need to be re-assessed to ensure employees remain “better off overall” when compared to the newly increased Modern Award rates.
- Enterprise Agreements that do not currently match the Modern Award will have these adjusted.
- Most Allowances will be increased in line with the increase in the standard rate. Expense related allowances are likely to increase in line with the relevant CPI index.
- The High Income Threshold will also increase from 1 July 2018. Any employers who sidestep Award conditions by using High Income Guarantees will need to check their agreed terms to ensure they remain compliant and above the new threshold.
More information can be obtained from your Flexi Personnel Business Manager or from the Fair Work Commission.