Minimum Wage Increase - What You Need to Know
The Fair Work Commission has announced a 3.3% increase to minimum wages following its 2017 Annual Wage Review. The decision applies to all employees covered by modern awards, enterprise awards, as well as award free employees.
Summary of Decision
- Minimum wages in modern awards will be increased by 3.3% from the first full pay period commencing on or after 1 July 2017.
- The 3.3% increase will also apply to the national minimum wage, increasing it by $22.20 to $694.90 per week, or $18.29 per hour.
- The national minimum wages for juniors, employees under training arrangements, and employees with a disability have also been increased by 3.3%.
- This increase can be absorbed into existing over award payments, as per the absorption clause in the applicable modern award.
Juniors, Apprentices, Trainees and Piece Workers
Most junior and apprentice rates are expressed as a percentage of a nominated adult rate and so the 3.3% increase will also flow through to these employees’ wages.
Most trainees are covered by the National Training Wage system that is included as a schedule in nearly all modern awards. National Training Wages will also be increased by 3.3% from 1 July 2017.
Piece rates will increase in accordance with the relevant provisions in the modern award, pay scale or transitional award.
Award/agreement free employees
Adult minimum wages
Award/agreement free adult employees are covered by the national minimum wage. This will be increased to $694.90 per week (or $18.29 per hour) from 1 July 2017.
Casual award/agreement free employees are also covered by a default casual loading which remains at 25%.
What do I need to do?
Nothing for now. FIAA will be updating our award snapshots with the new pay rates to be available to our members by the 1st of July . We will advise our members when the updated pay rates will be available to download from our website or as always you can contact our Workplace Advice Team.
Award Rates/Snapshots - FIAA Website
Members will be able to access the FIAA's updated award snapshots outlining the impact of the wage review on the awards that apply to your business from our website over the coming weeks.
As mentioned all awards will be updated by the 1st of July and able to be downloaded from our website under the resources/awards tab. (please note you will need to log in as a member to download the resources)
FIAA members can email our Workplace Advice Team at email@example.com or call our office on 02 4340 2000 or on 1300 FIAA 4U (1300 342 248) if you require any further information.
If you are not a FIAA member and would like to know more about our membership benefits and services please contact our office on 02 4340 2000 or on 1300 342 248 and a FIAA representative will be happy to discuss this with you, with no obligation.