Our business pays our employees above the award rates. Do we need to apply the increase set by the Fair Work Commission?
The Expert Panel of the Fair Work Commission announced a 3.5 per cent increase to the minimum wage as part of the Annual Wage Review 2017-18 Decision. The National Minimum Wage will be increased to $719.20 per week or $18.93 per hour. All junior, apprentice and trainee wage rates will be adjusted proportionately.
This increase affects minimum base rates of pay specified in modern awards. If the business currently rates of pay stated in an award, those rates will need to be increased by 3.5 per cent.
The wage increase can be absorbed into over-award payments, so long as the above-award rate of pay is not less than the new award rates after the increase comes into effect.
The wage increase is operative from the first full pay period on or after 1 July 2018.
