The Fair Work Commission has recently announced that the national minimum wage will increase 2.5% from the first full pay period starting on or after 1st July, 2015.

The national minimum weekly wage will be increased to $656.90 or $17.29 per hour.

The increase from the 1st July, 2015 applies to employees who are paid under a Modern Award, the national minimum wage or a registered agreement. Minimum wages under modern awards may include:

  • Wage rates for adults, in some cases, at different rates according to experience and qualifications;
  • Wage rates for juniors, employees with a disability and employees to whom training arrangements apply;
  • Casual loadings;
  • Piece rates.

Most employees are covered by a Modern Award regardless of their position, qualification, skill, experience or industry. However, only those employees who are paid ‘award rates’ will require to be reviewed to ensure they remain above or at least in line with the relevant increased rate.

Employers within industries such as retail, wholesale distribution, trade apprentices and hospitality are often in the headlines as not paying their employees correctly. Typical employees within these industries who are ‘award’ employees include warehouse workers such as pickers and packers, food and beverage attendants, retail sales assistants and trade apprentices.

The Fair Work Commission will be handing down their Determination for each Modern Award mid to late June at which time the Commission will update rates within each award and publish the same.

It is important that employers undertake a wages / payroll reconciliation to ensure that their employees are not paid less than the base rate of pay that would be payable under the relevant modern award.

Don’t wait until after July to establish if your business and employees are affected by this minimum wage increase. Contact our team of experts as soon as possible at info@humanresourcing.com.au . Our team at Integrated Human Resourcing are experts with employment relations and wage / salary reviews and are able to provide you with support and guidance through this minefield.

Ref: http://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/minimum-wage-increase-from-1-july-2015-annual-wage-review