The Fair Work Commission’s Expert Wage Panel determined to increase the National Minimum Wage and Modern Award rates of pay by 2.4%. The new rates of pay will come into effect from the first full pay period on or after 1 July 2016.

Specifically, from 1 July 2016 the National Minimum Wage will be $672.70 per week or $17.70 per hour. The rates of pay in all Modern Awards will also increase by 2.4% and consequently increase the amount of any applicable loadings or penalties, however that increase may not be 2.4%.

Now is the time for business to review the wages and salaries of their staff to ensure that they are meeting their minimum wage obligations in either the National Minimum Wage Order or applicable Modern Award. Additionally, it is an ideal time for those organisations utilising set off provisions in their contracts of employment to review the rates of pay provided to staff to ensure those rates are sufficient to cover the work performed. Moreover, those businesses with enterprise/collective agreements will also need to ensure that the rates within those agreements meet the minimum obligations in the otherwise applicable Modern Award.

Article by Alicia Mataere of Holman Webb