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Employment Law Update — Minimum Wage Increase

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By Herbert Fischbacher, Principal, MST Lawyers

The Fair Work Commission minimum wage panel decision of 1 June 2018 announced a 3.5% increase to the Federal Minimum Wage Rate.

The decision lifts the federal weekly minimum wage from $18.29 per hour ($694.90 per week) to $18.93 per hour ($719.20 per week). 

The increase in minimum wages will take effect from the first full pay period commencing on or after Sunday, 1 July 2018.

Businesses covered by a Registered Agreement

Businesses that are party to a registered agreement (e.g. certified agreement, collective agreement, enterprise agreement, AWA or ITEA) must ensure that the base rates of pay provided under that agreement meet or exceed new minimum base rates of pay under the relevant underpinning modern award.

Award Covered Employers

Businesses that are not party to a registered agreement will be covered by modern award rates of pay. The increase in minimum rates of pay will also flow through to penalty rates and overtime loadings payable under the relevant modern award.

Real Estate Industry Award 2010

Whilst the Real Estate Industry Award 2010 underwent an overhaul earlier this year, which included an increase to the wage rates, there is no indication from the Fair Work Commission that this increase will not apply to the Real Estate Industry Award 2010. 

Confused? Need help?

MST Lawyers offers an Annual Updater Service to provide businesses with a summary of minimum wage rates that apply in the 2018/19 financial year.

Businesses that register for the Annual Updater Service will be provided with a summary of new minimum wage rates for each job classification contained in the relevant modern award or, if applicable, in its registered workplace agreement.  

To register for the Annual Wage Updater service, please click here for information on the fixed fee cost associated with the update and registration form.

For more information, please contact our Employment Law team by email or on telephone +61 8540 0200.