HR Unplugged

NEWS

ANNUAL MINIMUM AND AWARD WAGE INCREASES

 
 
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IT’S OFFICIAL

 

  • Annual wage decision released by Fair Work, effective 1st full pay period in July

  • 3% increase across the board (3.5% in 2018) = $21.60 per week increase for adults

  • National Minimum Wage adult hourly rate will now be $19.49 per hour

  • Applies to all Award base rates

It’s official. The Fair Work Commission has released the latest round of annual wage increases – this becomes law effective the first full pay week in July. This comes after submissions by relevant stakeholders across the economic and political spectrum.

This ruling affects not only those earning the minimum wage, but all employees on Award-based wages. It also has a flow-on effect for non-Award employees too, and those “all-up hourly rates” and salaries.

Why it is lower than previous years?

  • The Consumer Price Index (CPI) has fallen, with annual change tracking at 1.3%;

  • The Wage Price Index (WPI), at 2.3% for the year, is tracking less than forecasted;

  • GDP has been more sluggish than forecasted by economists, sitting at 1.7%, less than what was expected;

  • The unemployment rate, at 5.1%, has risen by only 0.1% but it is expected to continue to decline. This, along with falling house prices and a sluggish GDP, is one of the reasons for the Reserve Bank cutting the cash rate to an historic low of 1.25%.

What does it mean for employers?

  • Make sure you are compliant and make any necessary payroll changes, including flow-on effects with Superannuation and allowances, effective the first full pay week in July;

  • Review Award-based employees and ensure all increases outlined by this determination are applied in the same way;

  • Importantly, don’t forget to review the wages of non-Award employees, or employees you pay above Award, either as an all-up salary, etc. You have a clear responsibility to ensure you are not underpaying employees – with the new rates in the Award as the benchmark.

If you need a little help, or a lot of help, please contact me on 0424 995 502, mel@hrunplugged.com.au, or via Facebook. We can provide you with the correct rates for each classification that applies to your industry / Award, and/or undertake a “compliance” check to make sure you are not breaching any legislative provisions.

Remember, you have until first week in July to make these important changes

 
 
 
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