Employment and Migration Blog

National Minimum Wage increases come 1 July

Posted by Stephen Booth on 11 Jun 2015

For those who've been following Anna's blog, I'm now her stand-in - Anna is on parental leave till February 2016, and expecting any day now so we are thinking of her!
 
The Fair Work Commission has announced the changes which will apply to the National Minimum Wage and modern award wage rates from 1 July, 2015.
 
The National Minimum Wage will increase 2.5% to $656.90 or $17.29 an hour. That rate of increases will also apply across award rates- so, if you pay award rates, you need to factor in these increases. 
 
If you pay above award, these increases can be absorbed into existing rates.
 
If you are paying anyone less than $17.29 an hour, or less than $656.90 for a 38 hour week (and no junior rates or supported wage arrangements apply), then you've got an underpayment problem.
 
The lower rate of increase (last year it was 3%) reflects the lower inflation rate and perceived weakness in the economy.
 
As is traditional, the Australian Council of Trade Unions complained that it was not enough, and employer groups said it was too much.

If you have questions about increases to the National Minimum Wage and modern award wage rates, and how they affect your business, please contact the Coleman Grieg Employment Law team: