Prepare your business for a 3% increase to the national minimum wage

The 2019 Annual Wage Review has resulted in a decision by the Fair Work Commission to increase the national minimum wage by 3%. This also results in a 3% increase to the minimum pay rates in the modern awards. 

The new national minimum wage, which applies to all full-time and part-time employees who aren’t covered by an award or agreement, will be $740.80 per week or $19.49 per hour. 

Casual employees must be paid an additional 25% of the minimum hourly rate as a casual loading. 

When does the change come into effect?

The increase applies from the first full pay period starting on or after 1 July 2019. 

Which employees will receive this increase?

Employees whose minimum wage entitlements are set by: 

  • The national minimum wage 
  • A modern award  
  • A registered agreement (in some circumstances) 

What do employers need to do?

  1. Check whether your employees are covered by the national minimum wage, or a modern award.
  2. Should a modern award apply to your employees, ensure you have correctly classified employees under the relevant award, and confirm the minimum rates of pay which will apply. 
  3. Review the current rates of pay for your employees and, if required, adjust their pay rates from the first full pay period starting on or after 1 July 2019. 

Be aware that if your employees are covered by the Hospitality, Pharmacy, Fast Food or Retail Awards, there are also changes in penalty rates which will apply from 1 July 2019, following a decision by the Fair Work Commission in 2017. 

Do you need assistance determining the applicable modern award for your employees, or have any other questions?  

Contact our experienced HR Consultanton 1300 675 393 or using the button below. 

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