Key Feature: The Fair Work Commission’s Minimum Wage panel increased all Modern Award minimum wage rates and the Federal Minimum wage by 2.5%, taking the new national minimum wage to $656.90 per week or $17.29 per hour (respectively $821.13 and $21.61 for employees working on a casual basis).
What this means for you:
- Modern Awards
Any business that applies Modern Award rates will need to increase those rates to comply with this decision. The national minimum wage applies to employees who aren’t covered by an award.
- Annualised Salaries and Individual Flexibility Agreements
If you have implemented Individual Flexibility Agreements, you will need to reassess those agreements to ensure employees remain “better off overall” when compared to the newly increased Modern Award Rates. Employers who use annualised salary arrangements under Modern Awards should also check the Award requirements
For any further information regarding this topic, please feel free to contact our Head of HR Solutions, Benoit.