Gemma Wheeler- Carver, Solicitor and Murray Thornhill, Director and Notary Public from the Commercial Litigation Team update employers on the latest Fair Work Commission announcement.

The Fair Work Commission announced recently its annual wage review under the Fair Work Act 2009. It is understood that 21% of Australians will be affected by this rise:

  • the National minimum wage is set to increase to $740.80 per week or $19.49 per hour (up 3%); and
  • Modern Award minimum wages will increase by 3%; and
  • The National Training wage will increase by 3%; and
  • Modern Award minimum wages for those employees with a disability, and for those with training arrangements will increase by 3%

Employers – Who is affected, what do they need to do and when?

Employers will be required to review the employment contracts of any employees that are paid wages at the minimum wage (or within 3% of that), or are under a modern award or other industrial instrument such as an Enterprise Agreement.

This increase must take effect in the pay period on or after the 1st July 2019.

Employers in the West Australian state industrial system (sole traders and unincorporated trusts and partnerships) will need to wait a week or two more for announcements of increases to the state minimum wages, but should have processes in place to pass on the increases in the first pay cycle of July 2019.

Need a hand ensuring you are complying with the minimum standards or to make sure your employment contracts are otherwise compliant?

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.