By Paul Ackerman
The Fair Work Commission’s annual wage review decision came into effect from 1 July 2018. The decision delivered a 3.5% increase to both the national minimum wage and the minimum wage for all modern awards. The new national minimum wage will move to $719.20 per week or $18.93 per hour. This represents an increase of $24.30 per week.
1 July 2018 was also the effective date for changes to Sunday penalty rates in the Fast Food, Hospitality, Pharmacy and Retail awards following a Fair Work Commission decision last year.
The number of employees who have their pay set by an award is estimated to be 2.3 million or 22.7 per cent of all employees. The annual wage decision impacts not only employees who have their wages set by the national minimum wage or by a modern award but also those whose pay is set by collective agreements linked to the outcome of the review.
Don’t get caught out by these changes
It is important that all employers are not only aware of these new rates but of all the provisions of any Award covering your employees. The Fair Work Commission have been targeting underpayments all year and currently have an audit program covering 1000 businesses around basic employment entitlements.
Employee Matters are here to help and can support you via our Modern Award Classification service or as part of our Employee Expert Retainer.