The Fair Work Commission 2.5% increase to minimum wages will apply from the first full pay period starting on or after 1 July 2015.
The increase only applies to employees that get their pay rates from the national minimum wage, a modern award or in some cases a registered agreement. Most employees are covered by an award.
Award rates will increase by 2.5%. The Fair Work Ombudsman is encouraging employers to use its online pay tools to check new pay rates applicable to their workplace. These can be accessed at www.fairwork.gov.au/paycalculator.
“In our experience, a common cause of underpayment of wages is the failure by employers to pass on annual wage increases,” says Fair Work Ombudsman.
Please check in with HR Central if you are unsure of how this may impact your business.