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Fair Work Commission increases wage rates by 3%

The Fair Work Commission has just handed down its annual wage decision.

Effective the first full pay period on or after 1 July 2019 the National Minimum wage will increase by 3%, bringing it to $740.80 per week or $19.49 per hour. This is an increase of $21.60 per week.

In addition to this, all modern award minimum wages will increase by 3%. The wage rates in Modern Awards are expected to be updated in the coming weeks.

The Fair Work Commission president Ian Ross in delivering his decision stated “we are satisfied the level of increase we have decided upon will not lead to any adverse inflationary outcome and nor will it have any measurable negative impact on employment”.

It is estimated the increase will impact around 2.2 million Australian’s. “Such increases will mean an improvement in the real wages of employees who are reliant on minimum wages and an improvement in their living standards” said Justice Ross.

What do you need to do?

All employers should ensure that employees who are covered by an award are paid the minimum hourly rate specified in the applicable award for the work they perform. Any increases should be applied by the first full pay period on or after 1 July 2019. It is best practice to notify employees in writing of any changes to their rate of pay.

Should you need any support in determining award coverage or pay rates for your employees, please reach out to us at enquiries@liquidhr.com.au

www.liquidhr.com.au