Annual Wage Review Decision Increase to Minimum Wages

31st May 2016

The The Australian Fair Work Commission today decided to increase the National Minimum Wage and all modern award wages by 2.4 percent operative from 1 July 2016.

The National Minimum Wage (NMW) will be $672.70 per week, or $17.70 per hour. The hourly rate has been calculated by dividing the weekly rate by 38, on the basis of the 38 hour week for a full-time employee. This constitutes an increase of $15.80 per week to the weekly rate or 41 cents per hour to the hourly rate.

Contrary to less optomistic economic forecasts from other quarters, the Fair Work Commission described the Australian economic conditions as robust, with some continued improvement in productivity and historically low levels of inflation and wages growth.

Fair Work Commission President Ian Ross believed “The prevailing economic circumstances provide an opportunity to improve the relative living standards of the low paid and to enable them to better meet their needs.” He said “… the level of increase will mean a modest improvement in the real wages for employees who are reliant on the NMW and modern award minimum wages.”

You can read the decision here. For advice on the increases to modern award applicable to your business please contact me on 03 9097 1771 or advice@maguire.com.au