Minimum wage increase by 2.4% from 1 July 2016

Client Newsletter May 2016
12/05/2016
Individual Tax Return Checklist
21/06/2016

Minimum wage increase by 2.4% from 1 July 2016

Tuesday, 7th June 2016

The Fair Work Commission has announced it will increase the national minimum wage by 2.4% from 1 July 2016.

The new national minimum wage will be $672.70 per week (based on a 38 hour week) or $17.70 per hour.

This 2.4% increase only applies to employees that get their pay rates from:

  • the national minimum wage
  • a modern award or
  • a registered agreement (in some cases).

Most employees are covered by an award. Award rates will increase by 2.4%. If you’re not sure which award applies to you, please contact us.

The Fair Work Commission will issue draft determination and orders about how this decision affects each modern award. It usually takes the Commission 2-3 weeks to update the pay rates in each award. Keep an eye out for updates.

The increase won’t affect employees who are already getting paid more than the new minimum wage.

We urge all employers to review their remuneration packages for their business before 1 July 2016 to unsure they are paying the correct amounts.