3% minimum wage increase from July 1


3% minimum wage increase from July 1

The Fair Work Commission has announced that from July 1 the national minimum wage will increase by 3% to $740.80 per week. This equates to an hourly rate of $19.49. A minimum wage is an employee’s base rate of pay for ordinary hours worked.

It has also announced an increase of 3% in all modern award minimum wages, which govern minimum mandatory pay rates in certain occupations or industries.   Confused already?   Contact us here

The decision will take effect from the start of the first full pay period after 1 July 2019. The commission anticipates that 2.2 million Australians will benefit, which is good news for employees reliant on the minimum wage, but…

What does that mean for an employer/business owner?

It means that as of the 1st July, you are compelled by law to ensure that you are paying the minimum of $19.49 as the hourly rate, or equivalent base rate as per the award your staff are under. It is important for every employer to acknowledge that employees cannot be paid less than their applicable minimum wage, even if the employees agree to it.

In the case of employing a junior employee (an employee under 21 years of age), they should be paid a percentage of the relevant adult pay rate unless:

  • the award, enterprise agreement or other registered agreement doesn’t have junior rates, or
  • they have completed an apprenticeship and are trade qualified

The percentages that apply are usually based on the employee’s age and increase on their next birthday.

HR Central understand that this can be stressful and confusing for employers. We can help to clarify and calculate:

  • Award interpretation: which award your staff should be employed under
  • Award classification: which level within that award (based on age, experience, education) your staff should be allocated in to
  • Pay analysis: Whether or not you are paying the correct amount, including base rate plus any entitlements such as leave loading and penalty rates
  • If you and your employees (and the industry) are affected by this increase

Contact us here

Remember it is always better to check than to guess. Let us make it easier for you. 1300 717 721

Read the Fair Work Commission Annual Wage Review statement here

HR Central

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