Author: Lehanne Bleumink, Gold Seal HR Services Manager.
Each year the Fair Work Commission carries out an annual minimum wage review. The 2019 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 2019.
The decision increases minimum weekly wages by 3.0%. The minimum wage is currently $719.20 a week or $18.93 per hour. As at I July 2019, this will increase to $740.80 a week or $19.49 per hour. This is a weekly increase of $21.60.
This 3.0% increase in minimum wages also means a 3.0% increase in the minimum wages under each applicable modern award. Weekly wages will be rounded to the nearest 10 cents when calculating this. Fair Work is yet to update modern awards; updated rates should be available by 1 July 2019.
In the meantime for budgeting purposes, if you have employees paid according to the modern award rate you can calculate a 3.0% increase. An employer is not obligated to pass on the 3.0% 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.
Keep your eye out for the July newsletter which will contain further information.
For further clarification on the above, or assistance in any HR/IR matter, please call Gold Seal on 03 9510 5100 or email us at email@example.com