Increase to the Minimum Wage
The Fair Work Commission (FWC) have announced increases to the National Minimum Wage and Modern Award wages by 3.3% for the 2017/2018 year. Increases will apply from the first full pay period starting on or after 1 July 2017.
What do I need to do?
Employers must be ready to comply with the new NMW and Modern Award wage rates from 1 July 2017.
For award-covered employees:
- Modern Award employees are to receive a 3.3% increase to all modern Award Wages and weekly wages are to be rounded to the nearest 10 cents.
- Where your business is paying sufficiently above the relevant Modern Award rate of pay to absorb the increase, you will not be required to make any immediate changes or to apply the increase.
- If your business pays employees on, or very close to, the minimum weekly wage in a Modern Award (or an Enterprise Agreement) you will need to increase your employee’s wages by 3.3% to ensure compliance.
For non-award employees:
- The National Minimum Wage (NMW) will increase from $672.70 to $694.90 per week, or from $17.70 per hour to $18.29 per hour.
For employers negotiating a new Enterprise Agreement:
- These employers should consider the increase to ensure the rates that are negotiated are enough to pass the Better Off Overall Test.
If your employees are covered by a registered agreement, you should check it to see whether this increase affects you.
Some penalty rates are changing too
Remember that certain penalty rates in hospitality and retail awards will also change from 1 July 2017. You can read more about these changes and who they affect here.
Read the Fair Work Commission's 2017 Annual Wage Review decision here.