Important wage update from the Fair Work Commission

24 August, 2017

Each year, the Fair Work Commission reviews the national minimum wage and pay rates under awards. The following changes have taken affect from the first full pay period on or after 1 July:

Minimum wage

Effective 1 July 2017, minimum wage has increased by 3.3% to $18.29 per hour or $694.90 per 38-hour week (before tax).

This change only applies to employees whose pay rates are taken from the national minimum wage or a modern award. The increase does not affect employees who are already getting paid more than the new minimum wage.

Most employees are covered by an award. If you're not sure which award applies, use the Find my award tool found here.

If you pay your employees under an enterprise agreement or other registered agreement, check the agreement for pay rates and to determine whether this increase impacts you and your staff.

Impact of minimum wage increase on Support for Adult Australian Apprentices incentive

Support for Adult Australian Apprentices (SAAA) provides financial support for eligible employers who hire an Australian Apprentice (aged 25 or over) to undertake a trade in an area experiencing a skills shortage.

If your adult apprentice’s wage at the date of commencement or recommencement is equal to or greater than the national minimum wage, you may be eligible to receive a one-off payment of $4,000 12 months from the date of commencement.

In line with the increase to the minimum wage, the new hourly rate for apprentices who commence from 1 July 2017 is $18.29 per hour or $694.90 per 38-hour week (before tax).

The hourly rate for apprentices who commenced before or on 30 June 2017 is $17.70 per hour or $672.70 per 38-hour week (before tax).

Find out more about SAAA here.

Penalty rates

Effective 1 July 2017, penalty rates have increased for some awards in the following industries:

  • Hospitality
  • Restaurant
  • Fast food
  • Retail

These changes will affect some permanent and casual employees working on Sundays, public holidays, evenings or after midnight.

Find out more about changes to penalty rates here.

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