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2017 Annual Wage Review – Decision Issued

12 Dec 2018
2017 Annual Wage Review – Decision Issued

Increase to the minimum wage applies from 1 July 2017

The Minimum Wage Panel of the Fair Work Commission (FWC) recently handed down its Minimum Wage Ruling.

The FWC has awarded an increase of 3.3% to all adult full time weekly rates in the Modern Awards from the first pay period commencing (ppc) on or after 1 July 2017. Proportionate increases will flow to part time and casual workers.

The 3.3% increase results in the National Minimum Wage (NMW) increasing to $694.90 per week (or $18.29 per hour). Casual workers who remain ‘award free’ will have the casual minimum rate increased to $22.86 per hour from ppc 1 July 2017.

Here is the key action you’ll need to consider depending on your situation:

Enterprise Agreements

All businesses with enterprise agreements will need to ensure that the base rates of pay in their enterprise agreements are at least equal to the relevant rate in respective Awards as increased by the decision.

Individual Flexibility Agreements and Exemption Rate Salaries

All businesses with Individual Flexibility Agreements and Exemption Rate Salaries need to ensure that employees are “better off overall” when compared to the applicable Award comparison.

Over Award Paid Employees

Businesses who pay employees above the Award rate are not obliged to increase these employee rates but must ensure they are at least equal to or above the minimum applicable Award rate of pay following this increase.

Further advice and assistance

Workplace laws in Australia are some of the most complex in the world. Workforce Guardian is Australia’s leading HR and employment relations service for employers. Through their online HR system, you can access resources that can assist you in managing your employee wages and ensure you are fully compliant with workplace laws.

Subscribers to The Goods Community can take advantage of a 25% reduction in your first year’s subscription fee to the Workforce Guardian solution of your choice. Click here to join the community

People are our most valuable (and costly) asset – so it’s important we ensure we’re all covered in the event of an incident.