The Fair Work Act 2009 (the Act) requires the Fair Work Commission’s Expert Panel to conduct and complete a review of the national minimum wage and minimum wages in modern awards in each financial year.
On 6 June 2017 the Commission handed down its decision regarding an increase to modern awards and the minimum wage.
The commission determined that it is appropriate to increase the minimum wage and modern awards by 3.3 per cent.
The national minimum wage will be $694.90 per week, or $18.29 per hour. This constitutes an increase of $22.20 per week to the weekly rate or 59 cents per hour to the hourly rate.
Weekly wages will be rounded to the nearest 10 cents.
Increases take effect from 1 July 2017.
What does this mean for CCIQ members?
The increase only applies to employees that calculate their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.
CCIQ members whose businesses and employees are governed by a modern award (occupational or industry specific) will need to increase employee pay rates accordingly from 1 July 2017.
Where do I find updated awards?
Upon receiving formal notification of changes to all modern awards, CCIQ Employer Assistance will amend CCIQ award and wage templates to reflect the increase.
CCIQ members will be provided with copies of all modern awards and award pay guides relevant to their businesses via the CCIQ online member portal.
The commission is working on updating all pay tools and modern award. Once this is completed, CCIQ's Employer Assistance team will update member resources. It is anticipated this process will occur in June 2017.
Do I have to increase pay rates?
It is important that employers review the wage increases in accordance with their industrial instruments and contracts of employment, as some may have an obligation to pass on the increase even if they are paying above Award rates of pay.
After assessing the new rates of pay, there may be some circumstances where an employer is still paying above Award. If a contract does not provide an obligation to the employer to pass the increase on, the employee’s above Award wage will simply absorb the increase in their current rate of pay and no change will be required.