New minimum wages effective 1 July 2018
By
Key Business Advisors
Human Resources News
On Friday 1 June 2018, the Minimum Wage Panel handed down its ninth minimum wage decision resulting in an increase to the National Minimum Wage and all Modern Award minimum rates of pay, by 3.5%.
From 1 July 2018, the National Minimum Wage will increase to $719.20 per week, or $18.93 per hour.
What employers need to know:
National Minimum Wage or Modern Award
For employers who pay their employees at the National Minimum Wage or Modern Award rates, employers will need to apply the increase in the first full pay period commencing on or after 1 July 2018.
Above Modern Award or Above National Minimum Wage
For employers who pay above National Minimum Wage or Modern Award rates are not obliged by this decision to increase their rates of pay, however must ensure their rates are greater than National Minimum Wage or Modern Award rates, once the increase is applied.
Enterprise Agreement
For employers who pay under an Enterprise Agreement must also check and ensure the base rates in those agreements remain at least equal to the applicable new minimum Modern Award rates.
Individual Flexibility Agreement
For employers who have Individual Flexibility Agreements in place with their employees, employers need to review those arrangements to ensure employees remain “better off overall” when compared to the applicable new minimum Modern Award rates.
Annualised Salary
Lastly, for employers who pay their employees an annualised salary, it’s important to conduct checks of those annualised salaries against the applicable new Modern Award rates and patterns of work to ensure the annual salary compensates for the increased award entitlements.
Contact us on 1300 4 ADVICE for an explanation on how these changes may affect you and what steps are needed to ensure your business is compliant with these important minimum wage changes that come into effect from 1 July 2018.
