The Fair Work Commission has recently announced an increase of 3.5% to the national minimum wage following the annual wage review.
Who will the 3.5% increase apply to?
The 3.5% increase will apply to all employees who receive their pay rates from the national minimum wage or a modern award. It may also apply to a registered Enterprise Agreement.
Employers will need to review their contracts and industrial instruments to determine if employees are to receive a full or partial increase or if there is no increase.
The increase does not affect employees who are already paid above the new minimum wage.
When will the new pay increase apply?
The increase will apply to relevant employees’ base rates of pay from the first full pay period starting on or after 1 July 2018.
Modern Awards and Pay Guides are currently being updated over the next few weeks (check update dates) and these can be found here.