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Last month, the Fair Work Commission announced a 2.4 per cent increase to the National Minimum Wage, Modern Award wage rates and agreed base rates of pay.

A new National Minimum Wage comes into effect from the first pay period on or after tomorrow, July 1.

The minimum hourly rate for adult workers will rise from $17.29 to $17.7 on 1 July 2016.

Who does the increase apply to?

Employers need to be aware that the Annual Wage Review decision by the Fair Work Commission not only increases the National Minimum Wage, but also base rates of pay in Modern Awards and enterprise agreements.

The increase applies to all employees that get their pay rates from the national minimum wage, a modern award or in some cases a registered agreement. 

The new national minimum wage will be $672.70 per week or $17.70 per hour. The national minimum wage applies to employees who aren’t covered by an award or agreement.

Most employees are covered by an award. Award rates will increase by 2.4%. If you’re not sure which award applies to you, use the HR Advice Online Service included in your Better HR subscription or contact the HR Advice Hotline powered by Better HR.

What you need to do

Employers should undertake their own checks of Award provisions and periodically self-audit their compliance to avoid unexpected costs down the track.

Employers and employees can ask questions via:

 

Need help with HR and compliance? 

Contact Better HR