Today, the Fair Work Commission handed down the Annual Wage Review 2018-2019 decision.
That is to increase the national minimum wage and award wages by 3% effective from 1 July 2019.
The new National Minimum Wage will be $740.80 per week, or $19.49 per hour.
The increase is fully absorbable against overaward payments ie if you are paying employees base rates of more than 3% above award and you are also paying other entitlements under the relevant award and National Employment Standards, you can fully absorb the increase.
If you have an enterprise agreement or contract of employment that stipulates that wages will be adjusted in line with annual wage review or variations in award rates, you will need to pass these increases on.
If you are paying award-covered employees on an annualised salary basis or on an overaward payment that is intended to set off any monetary award provisions, you should review the arrangement to ensure that it remains above award once the new rates take effect.
Anyone requiring assistance in dealing with the issue is welcome to contact us for support.