The Minimum Wage Panel of the Fair Work Commission (FWC) has announced its annual wage review for 2016 today. The FWC decided a 2.4% increase will come into effect from the first full pay period on or after 1 July 2016.
The increase will mean the following;
Today’s FWC increase will be applied to minimum wages for junior employees, to employees to whom National Training wages apply, to employees with disability, and to piece rates through the operation of the methods applying to the calculation of those wages.
- The weekly rates of pay in the modern awards will increase by 2.4%, rounded to the nearest 10 cents, with commensurate increases in hourly rates on the basis of a 38 hour week.
- The casual loading in modern awards will remain at 25%.
- The National Minimum weekly Wage for award/agreement free employees will increase from $656.90 per week, or $17.29 per hour to $672.70 per week, or $17.70 per hour.
- The casual loading for award/agreement free employees will remain at 25%.
The superannuation guarantee has not increased. It will remain at 9.5%.
What happens now?
All employers should check current employee rates of pay and conditions to ensure they are not below minimum wage obligations.
The HR Advisory Service will undertake to update all relevant modern award wage guides to reflect the FWC increase which will be available online from 1 July 2016.
For more information or assistance, please contact the friendly team at the
AVA HR Advisory Service on
Telephone: 1300 788 977
Fax: (02) 8448 3299