Global Compliance Desk – Australia
Fair Works Commission Increases National Minimum Wage
From July 1, 2019, all minimum pay rates in all modern awards as well the national minimum wage will increase by 3%.
The Fair Work Commission has announced that the national minimum wage will increase by 3% to $740.80 per week (or $19.49 per hour). The weekly rate is based on a 38-hour week for a full-time employee. This amounts to an increase of $21.60 per week, or $0.56 cents per hour.
Additionally, the minimum wage rates in all modern awards will increase by 3% from the first full pay period starting on or after 1 July 2019. Employers should check the updated wage rates in the applicable modern award. The 3% increase will also apply to:
- Junior employees;
- Employees to whom training arrangements apply;
- Employees with a disability.
Employers should also check whether there are other additional costs in any piece rates or allowances that use the base rate of pay in the modern award for calculation. The Commission will issue draft determinations and orders about how this decision affects modern awards. It will then update the pay rates in each award.