6 June 2017
On 6 June 2017, the Fair Work Commission (the “FWC”) handed down the decision in its annual wage review.
From the full pay period on or after 1 July 2017, the national minimum wage will be $694.90 per week (or $18.29 per hour). This represents an increase of $22.20 per week from the current national minimum wage of $672.70 per week.
Following the decision, minimum wage rates in modern awards will be increased by 3.3% and a new national minimum wage order will be made with respect to award free employees.
What does this mean for employers?
- Subject to the requirements of relevant modern awards, enterprise agreements and employment contracts, from 1 July 2017, employers must ensure that their full-time employees are paid at least $694.90 per week (or $18.29 per hour).
- Employers must be aware of the award or agreement (if any) that applies to their employees and ensure wages are paid pursuant to it, noting that minimum wage rates in modern awards will be increased by 3.3%.
- An employer who fails to pay wages in accordance with the national minimum wage order or requirements of a relevant award or agreement will be exposed to liability for breach of the Fair Work Act 2009 (Cth).