National Wage Review

The Fair Work Commission has released their decision regarding the increase to the 2019 National Minimum Wage. The decision provides for a 3% increase to the minimum wage rates in the Modern Awards. This increase will apply from the first pay period on or after 1 July 2019.

The wage review panel has outlined key considerations in determining this increase to the minimum wage. These factors include:

The rising cost of living standards;
Economic considerations, including inflation and market conditions; and
Employment growth the for the 2018-19 financial year

The increase represents a $21.60 per week increase to the minimum wage, with the new minimum wage being $740.80 per week or $19.49 per hour.

Expense related allowances such as travel, meal and tool allowances are adjusted in accordance with the national CPI. The Fair Work Commission will provide a decision in relation to these allowance

s prior to the 1 July 2019 increase taking effect.

What does this mean for employers?

If your employees are engaged in accordance with a Modern Award, the minimum rates of pay will increase by 3% from the first pay period on or after 1 July 2019. If the employees are paid above the minimum entitlements of the Modern Award, the 3% can be absorbed in the minimum hourly rate.

If your company engages employees on an enterprise agreement that increases in accordance with the National Wage Review, then the wage rates are required to be increased by 3% on the first pay period on or after 1 July 2019.

If your employees are engaged under an Enterprise Agreement where the wage increases have a dollar amount or a prescribed percentage increase, the National Wage Review decision will have no impact, unless the base wage rate is less than the minimum entitlements of the Modern Award. The base wage rate in the Enterprise Agreement will need to be adjusted to be equal to the Modern Award rate.

Please contact our office if you require assistance with the adjustment of wages.