May 30, 2019

Minimum wage increase of 3% coming 1 July 2019

The Fair Work Commission has confirmed an increase of 3% to minimum wage rates, which will apply from the first full pay period after 1 July 2019.

The Commission has noted the increase is lower than last year (3.5%) in response to low inflation and GDP decrease. However, with average wage growth hovering around 2.8% it’s still going to be a hefty increase for many businesses.

The new national minimum wage will be $19.49 per hour, up from $18.93 per hour. This equates to $21.60 more per week, or a weekly rate of $740.80 for full-time employees.

For employers with employees whose pay-rate is based on a Modern Award or an industrial instrument, or even for employees who aren’t bound by an Award or other instrument, now is the time to review your rates of pay. This ensure employees don’t slip below minimum wage when the increase takes effect.

This increase to the minimum wage rate will almost certainly translate into an increase to the high-income threshold for unfair dismissal claims. Last year the high-income threshold increased by around 2% to $142,000 (base salary); a similar increase is likely this year.

If you would like assistance in determining where your employees sit in relation to the new minimum rates, please contact us.

say hi to our author

Merilyn founded Catalina Consultants in 2012 on the belief that all organisations, regardless of size, should have access to top quality bespoke HR services. She enjoys working closely with her clients and believes that the best results are built on relationships of rapport, trust and authenticity. Growing up, Merilyn had her sight set on stardom and dreamed of becoming an actor. She also sang and played the piano, but ended up studying accounting and HR. Whilst she hasn’t won her Grammy just yet, she still loves a good karaoke night. Merilyn loves to travel with her family, with South Africa being one of her most memorable destinations.

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