Minimum Wage Increase 2019
The Fair Work Commission’s Expert Panel for annual wage reviews (Panel) has today published its annual wage review under the Fair Work Act 2009 (Cth).
The outcome of the Panel’s review is that from 1 July 2019:
- the National Minimum Wage and modern award minimum wages will increase by 3.0%; and
- the National Minimum Wage will increase to $740.80 per week (up from $719.20 per week) or $19.49 per hour (up from $18.93 per hour).
The 3.0% increase will also apply to modern award minimum wages for junior employees, employees to whom training arrangements apply, employees with disability, and to piece rates.
Likewise, the wages in the National Training Wage schedule will increase by 3.0%.
The Panel declared that around 2.2 million (or 21%) of Australian employees who are reliant on minimum rates of pay or modern award rates of pay will be directly affected by the increase.
The determinations which give effect to the increase in modern awards will be published by the Panel shortly.
What does this mean for employers?
The Panel’s decision means that employers who pay their employees at minimum wage rates pursuant to a modern award, the National Minimum Wage or other industrial instrument, will be required to increase their employees’ pay in the first pay period on or after 1 July 2019.
Employers who pay their employees under an industrial instrument, such as a collective or enterprise agreement, should also review the rates under those instruments to ensure that they are equal to or above the applicable minimum wage rates.
Employers who pay their employees above the minimum wage rates may be able to absorb the increases without making any changes.
Employers can contact a member of the Hall & Wilcox employment team with any queries or for assistance with meeting their minimum wage compliance obligations.
You might be also interested in...
Employment & Workplace Relations | 17 May 2019
With the Federal election taking place tomorrow and current polls revealing it will likely be a competitive race to the finish, it is a good time for employers to understand what policies the major political parties propose in the employment and industrial relations sphere.
Employment & Workplace Relations | 17 Jun 2019
On 7 June 2019, the Fair Work Ombudsman (FWO) announced that it would not pursue Uber Australia Pty Ltd (Uber Australia) for employee entitlements after finding that Uber drivers are independent contractors and not employees of Uber Australia…