The Fair Work Commission Makes An Annoucement

The Fair Work Commission has announced a 3.5% increase to minimum wages, which will result in more than 2 million employees receiving a pay rise effect 1 July 2018. The new national minimum wage will be $719.20 per week or $18.93 per hour. This amounts to an increase of $24.30 to the weekly rate or an increase of 64 cents to the hourly rate.

In addition to an increase in base rates, award allowances that are calculated on a percentage of base rates will also increase in line with the new rate.

Who does the increase apply to?

• Employees who aren’t covered by an award or agreement
• Employees who are covered by an award, the award rates will increase by 3.5%
• The increase doesn’t automatically apply to rates within registered agreements unless stated within the agreement. However, the base rate within a registered agreement cannot be less than the modern award rate.

What happens next?

In the coming weeks, the Fair Work Commission will update pay rates in each award.
Employers who pay their employees the National Minimum Wage or as per a Modern Award rate will need to pay as per the new minimum wage rate from the first full pay period starting on or after 1 July 2018.

If you have a registered agreement that covers your employees, you will need to need to ensure that the minimum base rates within your agreement reflect the new minimum base rates applicable within the Modern Award rates. If your current Agreement includes base rates which are less than the new National Minimum Wage rate, you will need to increase them from the first full pay period on or after 1 July 2018.

If you require more information in relation to calculating the correct base rates for your employees or need help reviewing a registered agreement to see if these changes apply to your business, please call Preston HR on 4052 0709. We are based in Cairns but service all over Queensland.