If you are an employer who employs staff under a Modern Award you need to be aware that minimum award wages are increasing by 3.5% in the new financial year. From 1 July 2018 the national minimum wage will increase to $719.20 for a 38-hour week or an hourly rate of $18.93 with casual loading staying at 25%. This comes after the Fair Work Commission conducted an annual wage review. For more information on the wage rise you can refer to the Fair Work Ombudsman site.
According to the Fair Work Commission, Australia has sustained uninterrupted economic growth for the last 27 years with a wage increase of 5.8% over the past decade. This has not increased the standard of living of award dependant households but it has provided an increase in the living standards of single adults. Compared to the time of last year’s review, this year points to a healthy national economy and labour market that can shoulder this increase.
However, the increase is lower than the recommended rise of 7.2% proposed by the ACTU and the Australian Catholic Council for Employment Relations. The Fair Work Commission says that this is due to adverse employment effects to those on low wages, young people and those vulnerable to poverty via loss of employment or decreased hours.
Its important to stay informed with the latest information on wage rates and remain compliant with your workplace obligations. Employers can register for a free account with the Fair Work Ombudsman and receive customised information and advice for your business.
Go to the Fair Work website for more information or call 131394.
Robertson Hyetts are experts in Employment Law. The bigger your workplace the more complex your employer obligations are. We take care of all your legal obligations, employment contracts and business documentation so you can get on with the job of managing staff and running your business.
Give one of our Employment lawyers a call today to ensure your workplace is compliant on 03 5434 6666.
