Annual Wage Review Panel Increases Minimum Wages

2nd June 2015

The President of the Fair Work Commission, Justice Ian Ross, today announced the decision of the Annual Wage Review Panel. The National Minimum Wage (NMW) and modern award minimum wages will increase by 2.5 per cent commencing the first pay period on or immediately following 1 July 2015

The NMW will increase to $656.90 per week ($17.29 per hour)

Justice Ross stated that the Annual Wage Review Panel decided to increase minimum wages to a lesser extent than it might otherwise have done, due to the slower rate of economic growth (including downturn in the Mining sector), higher unemployment, relatively moderate inflation and wages growth over the past twelve months. The Federal Treasurer had also forecast a slower rate of return to the long term trend in GDP growth of the economy.

Justice Ross said he was satified that there was not significant pressure on the cost of employing labour and that social factors such as equal remuneration and the modern award objective of social inclusion justified an increase to minimum wages.

The Panel, once again, rejected the notion of industry by industry or award by award reviews of minimum wages. Justice Ross said that the current statutory arrangements leaned toward a global approach, although the Panel was entitled to take into account exceptional circumstances prevailing in any particular part of the economy. He believed there were not any exceptional circumstances warranting such an approach this year.

The decision is expected to affect the wages of approximately 1.86 million award reliant employees.

The Commission issued a statement including full details and explanation of the decision. Draft determinations to amend the modern awards will be published prior to the final orders that will commence on 1 July 2015.

Please contact us if you require advice on the application of this decision to your business.