Minimum wage increase confirmed - What to look out for?

The Fair Work Commission (FWC) has just announced a 2.4% increase to minimum wages as part of its annual wage review.  The changes are to apply from the first full pay period commencing after 1 July 2016 so now is the time to review their employment agreements and prepare.

The national minimum wage for award or agreement free employees will increase to $672.70/week, or $17.70/hour.  Employees covered by awards will see their award rates increase by the 2.4%.

Failure to comply with the new rates can result in claims by employees and the imposition of penalties.

We encourage all businesses employing staff to consider the following, depending on how their staff are employed:

1. Employees subject to award conditions – review and update your pay rates as appropriate based on the revised award conditions.
2. Employees subject to enterprise agreements – review your agreements to ensure that pay rates will not fall below the new minimum award or national minimum wage.  This can be an issue if current rates of pay under the agreement are equal to, or only marginally higher than, the current minimum award rates, and the agreement doesn't provide for a similar increase.
3. Award/agreement free employees – review pay rates to ensure all employees are at least paid the new national minimum wage of $672.70/week or $17.70/hour.

For more information please contact Maxim Accounting & Business Advisors on 4925 1000.  You can also refer to FWC’s website at https://www.fwc.gov.au/.

 

minimum_wage.jpg

X
Enter your Maxim Accounting and Business Advisors username.
Enter the password that accompanies your username.
To prevent automated spam submissions leave this field empty.
Loading