New National Minimum Wage Rate Commences 1 July 2017

Friday 30 June 2017 @ 9.14 a.m. | Legal Research | Trade & Commerce

On 6 June 2017, the Expert Panel issued its Annual Wage Review 2016–17 Decision which details the rates to be set in the national minimum wage order to take effect on 1 July 2017. In light of that decision, the Fair Work Commission has announced an increase of 3.3 percent to the national minimum wage following its annual wage review.

Who does the increase apply to?

The 3.3 percent increase applies to employees that get their pay rates from:

  • the national minimum wage; or
  • a modern award.

The national minimum wage applies to employees who aren't covered by an award or agreement. For employees covered by an award, award rates will increase by 3.3 percent. The increase doesn't affect employees who are already getting paid more than the new minimum wage.

Monitoring of the new rates

The Fair Work Ombudsman (the Ombudsman) is the agency responsible for ensuring that workplace participants were aware of their obligations and for providing information and assistance to employers when their obligations change.

Employers are encouraged to sign up to the Ombudsman’s email updates to keep informed about when and where to access the latest information on the new wage rates.

Comment from the Ombudsman

The Ombudsman’s Natalie James says her agency will soon be releasing updated versions of its educational material, including its Pay and Conditions Tool (PACT):

“My agency is committed to educating and assisting employers to ensure they remain compliant with their workplace obligations. The best way to remain informed and receive tailored information for your business is to register a free My Account with the Fair Work Ombudsman."

Ms James also said it was important that employers made themselves aware of the changes as soon as possible in order to ensure their workers received their correct entitlements.

Other Changes to Penalty Rates

The Fair Work Commission (the Commission) has also made changes to penalty rates affecting the Hospitality, Pharmacy, Fast Food, Retail and Restaurant industries. These also come into effect on 1 July, 2017. The Commission will soon issue final determinations relating to the changes. Once this occurs the Fair Work Ombudsman will finalise the changes to its online tools:

“By signing up to our email updates, employers can make sure they receive immediate notification when our tools are updated and how the Fair Work Commission’s changes impact their business.”

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