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.