The Fair Work Commission has announced a 2.5% increase to minimum wages. The increase will apply from the first full pay period starting on or after 1 July 2015.
The increase only applies to employees whose pay rates are derived from the national minimum wage, a modern award or in some cases a registered agreement.
The new national minimum wage will be $656.90 per week or $17.29 per hour, an increase of $16 per week. The national minimum wage applies to employees who aren’t covered by an award or agreement.
The increase is lower than last year, which was a 3% increase.
The ACTU had sought a $27-a-week increase, while the Australian Chamber of Commerce and Industry had argued for a real wage cut of $5.70 a week. The Australian Industry Group had pushed for a $10.25 a week pay rise.
What must you do now?
Employers paying at award rates should start reviewing salaries and prepare to implement any relevant increases. If you pay above award you will still need to check compliance with minimm rates and allowances.
Determinations and orders about how this decision affects each Modern Award will be made shortly by the Commission and be available by 1 July 2015.
Contact us if you need assistance in reviewing your pay rates and stay tuned for further updates on Awards, pay rates, allowances and thresholds as we approach the end of this financial year.