In its annual review, the Fair Work Commission’s Expert Panel has today ordered an increase to the national minimum wage of 2.5%.
The new national minimum wage will be $656.90 per week or $17.29 per hour. This constitutes an increase of $16 per week to the weekly rate or 0.42 cents per hour to the hourly rate.
Despite submissions by a number of parties in favour of an award by award review of minimum wages or a differential wage increases for specific employers or industries, the Panel also considered it appropriate to increase modern award minimum wage rates by 2.5%.
The wage increase takes effect from the first full pay period on or after 1 July 2015.
What should you do?
From the first pay period on or after 1 July 2015, employers must satisfy the new minimum payment obligations for all relevant staff.
Employers should now carefully review their wage arrangements, so as to:
- Identify the modern awards or other instruments operating within the workforce, and which work classifications apply
- Compare existing pay rates, and implement the necessary wage increases, with effect from the first period following 1 July 2015
Employers paying above-award payments should also review their conditions to ensure that they are high enough to accommodate the increases (provided they are also supported by the necessary individual flexibility or other agreements).
Further, as a minimum, employers must continue to provide the minimum 9.50% superannuation contributions to the employees’ complying funds, calculated against Ordinary Time Earnings, to avoid liability to pay the Superannuation Guarantee (SG) Charge.
If you have any questions regarding your minimum pay obligations, or minimum superannuation contributions, do not hesitate to contact HR Legal.
This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.