FWC confirmed Annual Wage Review – Higher than expected
Each financial year the Fair Work Commission’s Expert Panel conducts a complete review of the national minimum wage and modern awards. This is in accordance with the Fair Work Act 2009.
The 2015–16 Annual Wage Review directly affects over 1.86 million employees in Australia. This decision is important as the annual wage review affects those who are reliant upon the minimum rates of pay.
All measures of inflation and wages growth are at historically low levels. The FWC have determined that it is appropriate to increase the National Minimum Wage by 2.4 per cent. The national minimum wage will be $672.70 per week. This means that the minimum wage works out to be an hourly rate of $17.70. This is calculated on the basis that a full time employee works a 38 hour week. In turn, this means there has been an increase of $15.80 per week. This equates to an increased hourly rate of 41 cents. While this increase may seem insignificant, for minimum income earners this can make a big difference.
Having regard to the proposed National Minimum Wage and the other relevant considerations, the FWC have also decided to increase modern award minimum wages by 2.4 per cent. Weekly wages will be rounded to the nearest 10 cents.
These increases will come into operation on July 1st 2016.
If you have any questions regarding the increase in minimum wage decision, please feel free to contact us on 1300 717 721. Alternatively The Fair Work Ombudsman has an online pay calculator and other resources to help you find the minimum pay rates that apply