What does the annual wage increase mean?

The Fair Work Commission (FWC) last week announced a 2.5% increase to minimum wages.  Following this announcement they have this week issued draft determinations detailing how this decision impacts individual awards.

The national minimum wage for award or agreement free employees will increase to $656.90/week, or $17.29/hour.  Employees covered by awards will see their award rates increase by the 2.5%.

The announcements come as part of FWC's Minimum Wage Panel's annual review of the national minimum wage, and minimum wages set out in the current awards.

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 then, 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 $656.90/week or $17.29/hour.

maxim-accounting.jpgFor more information please contact Maxim Accounting & Business Advisors on 4925 1000, or, alternatively, contact your industry body.

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