Increases to the minimum wage

The Fair Work Commission (Commission) announced yesterday that they had approved an increase to the national minimum wage (NMW) and minimum wages in Modern Awards by the largest amount in six years.

The announcement followed the FWC’s annual wage review decision, which outlined the wage increase that will take effect from the first full pay period commencing on or after the 1st of July 2017.

The Decision

For employees under the NMW the wage is increased from:

  • $672.70 to $694.90 per week; or
  • $17.70 per hour to $18.29 per hour

Modern Award employees are to receive:

  • 3.3% increase to all Modern Award Wages; and
  • Weekly wages rounded to the nearest 10 cents

What does this decision mean for your business?

From the first full pay period commencing on or after the 1st of July 2017, you will need to ensure your employees are being paid at least the new minimum wage.

Business owners should:

  • Before the 1st of July 2017, undertake a review of their employees’ wages;
  • If necessary, raise the rate of pay to meet the new minimum wage to avoid any inadvertent underpayment of wages; and
  • Seek advice if you have any questions regarding the rate of pay for your employees.

Do you have concerns regarding how this increase in the minimum wage may affect your business? Contact NB Lawyers, the Lawyers for Employers, on 07 3876 5111 for your consultation.

Written by

NB Lawyers – the Lawyers for Employers
07 3876 5111