National Minimum Wage Increases by 3%

The Fair Work Commission has announced a 3% increase in the national minimum wage, which will rise to $640.90 per week ($16.87 per hour)

This will apply from the first pay period starting on or after 1 July 2014. 

The increase is higher than last year, which was 2.6%, and falls just above half way between what the unions and business groups were seeking. The Commission noted that it ordered a lower increase than would have applied had the Superannuation Guarantee not been increasing to 9.5% as of 1 July 2014.

What must you do?

Employers paying at award rates should start reviewing salaries and prepare to implement any relevant increases. If you pay above award you will still need to check compliance with minimum rates and allowances. Determinations and orders about how this decision affects each Modern Award will be made shortly by the Commission. 

Contact us if you need assistance in reviewing your pay rates and stay tuned for further updates on Awards, pay rates, allowances and thresholds as we approach the end of this financial year.

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