Get set for a 3.3% increase to minimum wages

Get set for a 3.3% increase to minimum wages

(source: (c) Fair Work)

The Fair Work Commission (FWC) has announced a 3.3% increase to minimum wages.

The increase applies from the first full pay period starting on or after 1 July 2017.

The new national minimum wage will be $694.90 per week or $18.29 per hour.

Who does the increase apply to?

The 3.3% increase applies to employees that get their pay rates from:

  • the national minimum wage
  • a modern award.

The national minimum wage applies to employees who aren’t covered by an award or agreement.

For employees covered by an award, award rates will increase by 3.3%. If you’re not sure which award applies, use Fair Work’s Find my award tool.

If you’re covered by a registered agreement, you should check it to see whether this increase affects you.

The increase doesn’t affect employees who are already getting paid more than the new minimum wage.

Example 1:

Jason is a full-time employee who currently makes $17.79 per hour. He isn’t covered by any award or agreement. Because his pay is currently lower than the new minimum wage, he will get a pay increase from 1 July 2017. His new pay will be at least $18.29 per hour.

Example 2:

Angela is a casual employee who works Monday – Friday, and is covered by the Retail Award. She currently makes $31.26 per hour. Her pay is already above the minimum wage in the Retail Award, and will still be above the new minimum wage that applies from July 1. Therefore, her pay will not change as a result of the minimum wage increase.

What happens next?

The Fair Work Commission has issued draft determinations and orders about how this decision affects each modern award.

It usually takes the Commission 2-3 weeks to update the pay rates in each award. Once they make these changes, they’ll update their pay tools with the new rates.  You can subscribe to email updates and Fair Work will let you know when the new rates are available.

IMPORTANT    Some penalty rates are changing too

Remember, certain penalty rates in some hospitality and retail awards will also change from 1 July 2017. Visit our Penalty rates changes from 1 July 2017 page to read more about these changes and who they affect.

To keep up-to-date as changes happen be sure to follow PaysOnline on Facebook, Twitter or LinkedIn as well.