Reminder: increase in award wages – effective 1 July 201829 June 2018
From 1 July 2018 the new weekly minimum wage will become effective for all award covered employees.
This follows the Fair Work Commission’s Annual Wage Review, granting a 3.5% increase to the minimum wage; with the effect of lifting the national minimum wage by $24.30 a week or 64 cents an hour.
The Expert Panel’s decision which was handed down on 1 June means that the revised minimum wage will be $719.20 – or $18.93 an hour.
As a comparator, last year the Panel increased award rates by 3.3% (lifting the federal minimum wage to $694.90 a week or $18.29 an hour).
In practical terms and as an example, the C10 rate in the modern manufacturing award (being the award historically benchmarked in NW Reviews) will increase by $28.30 to $837.60.
In making it’s ruling the Panel concluded that compared to the position at the time of the 2016 – 17 Review, the economic indicators now point to a healthy national economy and labour market, with:
- strong growth in full-time employment, together with a high participation rate;
- strong employment growth of over 3% (being significantly higher than at the time of the last review); and
- real GDP increasing by 2.4% with business conditions remaining positive whilst inflation and wages growth remain low.
Note: Employers are bound to apply the increase for all their award covered employees, unless those employees are paid above the award – in excess of the now revised minimum wage.
Should you have any queries concerning the application of the minimum wage ruling please contact our office.