Recent Updates

FWC delivers a 3.5% increase to Modern Award minimum wages

Posted on by Ashley Lynch

The Fair Work Commission’s Expert Panel has awarded a 3.5% increase to the national minimum wage and the minimum wages within Modern Awards.

Accordingly, from the first full pay period on or after 1 July 2018, all Modern Award minimum weekly wages will be increased by 3.5%. The increase applies to minimum wages for all employees, including casuals, junior employees, trainees and apprentices, employees with disability, and to piece rates. Weekly wages will be rounded to the nearest 10 cents.

The national minimum wage will be $719.20 per week or $18.93 per hour. This constitutes an increase of $24.30 per week to the weekly rate or 64 cents per hour to the hourly rate.

If an Enterprise Agreement applies to an employee and the employee would otherwise be covered by a Modern Award, then the employee’s base rate of pay under the Enterprise Agreement must not be less than the base rate of pay that would be payable to the employee under the Modern Award.

If an Enterprise Agreement applies to an employee and the employee is not covered by a Modern Award, then the employee’s base rate of pay under the Enterprise Agreement must not be less than the national minimum wage.

If no Enterprise Agreement or Modern Award applies to an employee, then the employee cannot be paid less than the national minimum wage.

The wage submissions from the major industrial bodies were as follows:-

  • ACCI proposed a 1.9% ($13.20 per week) increase;
  • AiG sought a 1.8% ($12.50 per week) increase; and
  • ACTU suggested a 7.2% ($50.03) increase.

If you are currently a subscriber to Livingstones Modern Award Supply Service, the wage sheets for your applicable Modern Award will be updated in line with the 3.5% increase to take effect from the first full pay period on or after 1 July 2018. You will receive an email confirming when these are available via our online service.

If you would like more information on the impact that the 3.5% increase might have on your organisation, please contact your Livingstones Consultant on + 61 7 3833 1200.

Written by Ashley Lynch

Ashley Lynch

Ashley’s hardworking and driven nature is fuelled by her determination and desire to be successful. Her focus is on providing high quality work that is timely, tailored and innovative. Ashley consistently applies the Livingstones mantras of “listening for understanding” and “solutions for every unique circumstance” when working with clients and colleagues.

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