The Fair Work Commission has announced a 2.4% increase to minimum wages. The increase will apply from the first full pay period starting on or after 1 July 2016. The increase only applies to employees that get their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.
The new national minimum wage will be $672.70 per week or $17.70 per hour. The national minimum wage applies to employees who aren’t covered by an award or agreement. Most employees are covered by an award. Award rates will increase by 2.4%.
The wage increase takes effect from the first full pay run after 1 July 2016. As an example if your employees are paid on the 5th of July for the pay week 27 June to 3 July, this would be at the old rate. The new rate would apply from the pay run that starts on 4th July.