A new financial year – a new minimum wage!

A new financial year – a new minimum wage!

Every 1st July comes with a change in rates. If you have employees it’s time to check your rate and make sure you’re in line with the new minimum wage!

Saturday, 1 July 2017 marked the start of the new financial year. While many were celebrating the end of a busy period, or issuing urgent instructions to tax accountant for a speedy return, prudent employers will have checked that they were still complying with the national minimum wage and minimum award rates of pay.

If you have employees and haven’t checked your wage rates in a while, it is timely to check these now and make sure you are in line with (or a step or two ahead of) the minimum rates!

A new financial year – a new minimum wage!

What changed on 1 July 2017?

With inflation hitting 2.1% in the year to the end of March, the Fair Work Commission (FWC) increased the national minimum wage, and minimum rates in modern awards, by 3.3%.

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This resulted in the national weekly minimum wage jump up by $22 a week, from $672.70 to $694.90. This saw the hourly minimum rate of pay increase by 59c an hour to $18.29 per hour.

 Award covered employees

Employers with award covered staff take note – the minimum rates of pay in all modern awards also increased by 3.3%.

Employers in the fast food, hospitality and retail sectors should also pay close attention to changes in penalty rates. Despite union appeals, some Sunday penalty rates in these sectors have been reduced from 1 July 2017.

What should Employers do?

Employers with award/agreement free staff should check and make sure they are at least paying these employees the national minimum wage (either $694.90 per week or $18.29 per hour).

Employers with award covered workers should check their contract of employments and payslips. The purpose is to make sure that these employees are still being paid in line with, or greater than, the minimum rate in the relevant award.

Don’t fall into this trap!

I know, I know, you pay “well above award”. If you are one of those (lovely) employers who pays above the minimum award rate, it is still important to check that this 3.3% increase still means you remain in line with, or ahead of, the award!

If in doubt, give us a call and consider whether now is a good time to update your employment contracts and roll them out with a new 3.3% (or more) pay rise.

Contact us today if you require any assistance with Workplace Law.

(c) Progressive Legal Pty Ltd – All legal rights reserved (2020)

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