The Fair Work Commission has announced a 2.4% increase to minimum wages. The increase will apply from the first full pay period starting on or after 1 July 2016.
The increase only applies to employees whose pay rates are derived 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, an increase of $15.80 per week.
The increase is just slightly lower than last year, which was a 2.5% increase.
Trade unions had been calling for a $30 per week increase to halt what it called an alarming slide in living standards of the nation's lowest-paid. Employer groups wanted a smaller lift of less than 2 per cent.
In making the announcement, the Commission said a generally robust economic climate provided the opportunity for a modest increase to Australia's lowest paid workers.
Determinations and orders about how this decision affects each Modern Award will be made shortly by the Commission and will be available before 1 July 2016.
What must you do now?
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.
Contact us if you need assistance in reviewing your pay rates and award compliance and stay tuned for further updates on Awards, pay rates, allowances and thresholds as we approach the end of this financial year.