The Minimum Wage Panel has today handed down its seventh minimum wage decision which increased the National Minimum Wage, together with all Modern Award minimum rates of pay, by 2.4%. While the ACTU were asking for a $30 per week increase, the 2.4% increase more closely reflects a moderate increase expected by most parties.
From 1 July 2016, the National Minimum Wage will increase to $672.60 per week, or $17.70 per hour.
What this means for you
- Employers who pay their employees at the National Minimum Wage or Modern Award rates of pay will need to apply the increase in the first full pay period on or after 1 July 2016
- Employers who currently pay above National Minimum Wage or Modern Award rates of pay are not obliged by this decision to increase their rates of pay, but need to ensure their rates remain at least as beneficial, once the increase is applied
- Employers who pay under enterprise agreements should ensure that the base rates in those agreements remain at least equal to the new minimum Modern Award rates.
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.
If you pay any of your employees under annualised salary arrangements you will need to conduct an audit of those annualised salaries against the new Award rates and working patterns to ensure the annual salary compensates for award entitlements.
The HR Assured advisory team is currently updating wage tables to reflect the increase for HR Assured clients. We expect to have these uploaded over the coming days.
For more information on the minimum wage increase, clients should contact the HR Assured team. If you’d like more information about the benefits of becoming an HR Assured client contact us today for a free initial consultation.