The Fair Work Act 2009 requires national minimum wage & minimum award rates be reviewed each financial year. The Fair Work Commission recently issued the 2017/18 annual wage review which will see increase by 3.5% from 1 July 2018.
Wage Increase from July 2018 – This means from the 1 July 2018 the national minimum wage will be $719.20 per week for full-time employees or $18.93 per hour which will result in a $24.30 increase per week based upon last years national minimum wage for permanent employees. For award covered workers employers will need to consult the relevant modern award to determine what the new minimum pay rates are for their employees. Changes in minimum award rates may result in some loadings and allowances payable under modern awards also being affected.
It is important that employers are aware of these new rates and are paying their workers in line or above these minimums otherwise businesses may face fines up to $63,000 per breach with individuals being fined up to $12,600 for underpayment. The Fair Work Ombudsman has recently been targeting the underpayment of employees with businesses being randomly selected to be audited therefore it is now more important than ever that employers are paying their employees correctly.
If you need assistance to determine the correct rates of pay for your workers or need assistance classifying your workers under modern awards or determining if a modern award applies to your workers contact ABILITY GROUP on 02 9098 5500.
For further information, please refer to:
Title: Fair Work Ombudsman
Source: Get Set For a 3.5% Wage Increase 2018 Annual Wage Review
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