Author: Lehanne Bleumink, Gold Seal HR Services Manager.
Each year the Fair Work Commission carries out an annual minimum wage review. The 2018 annual wage review has been announced, with the new minimum wage rates taking effect as of the first full pay period on, or after 1 July 2018.
Please note the following:
- The minimum wage increase was 3.5%. As at 1 July 2018, the minimum weekly wage will increase to $719.20 per week or $18.93 per hour. This is a weekly increase of $24.30.
- This increase in minimum wages also means an increase in the minimum wages under each applicable modern award. Weekly wages will be rounded to the nearest 10 cents when calculating this.
- An employer is not obligated to pass on the 3.5% increase to employees paid above the award rate – however, it is important to ensure the employee remains either equal to, or above the new award rate.
- New minimum award rates for the Banking, Finance and Insurance Award 2010 will be made available on the Fair Work website ASAP.
- If you have employees employed under other Awards, those rates will also be made available on the Fair Work website ASAP.
- Also note there has been an increase to the meal allowance and other allowances within the Banking Finance and Insurance Award 2010 which will be made available on the Fair Work website also.
Following are the minimum Award rates that apply to the Banking, Finance and Insurance Award 2010:
A full time adult employee must be paid a minimum weekly rate for their classification. The figures in the table below are effective 1 July 2018, are based on a 38-hour week and do not include the superannuation guarantee charge.
|Level||Minimum Annual Salary||Minimum Weekly Rate|
A junior employee will be entitled to the percentage of the applicable adult weekly wage, as set out in the table below:
|Age||Percentage of Adult Rate|
|16 years or less||50%|
|At 17 years||60%|
|At 18 years||70%|
|At 19 years||80%|
|At 20 years||90%|
An employee must be paid a meal allowance of $16.48, or be provided with a suitable meal if required to work one and a half hours overtime and the period of overtime extends beyond 6.00 pm. A further allowance of $13.55 must be paid if the overtime exceeds five and a half hours.
Your employee may be eligible for other allowances, such as vehicle allowance or first aid allowance. Be sure to check the rates within the Award for increases.
Increase to the high income threshold – effective 1 July 2018
The high income threshold increases to $145,400 pa on 1 July 2018. High income employees are not usually covered by Modern Awards, they are employees whose annual earnings exceed the high-income threshold and who have received a formal guarantee of their earnings which remains in force.
This means that for dismissals, if an employee is not covered by an Award and does not have an enterprise agreement that applies, he/she must earn less than the high-income threshold to be eligible to make an unfair dismissal application to the Fair Work Commission.
It is important to be sure this minimum wage increase is passed on to employees paid Award rates to avoid underpayments.
For assistance on any of your HR/IR requirements – call Gold Seal on 03 9510 5100 or email HRServices@goldseal.com.au