Yesterday the Fair Work Commission handed down its Annual Wage Review decision, accessible here

From 1 July 2016, the national minimum wage will be increased by 2.4% (equating to an increase of $15.80 per week) and the new weekly minimum wage will be $672.70 (or $17.70 an hour). A ‘robust’ general economic climate with ‘some continued improvement in productivity and historically low levels of inflation and wages growth’ contributed to the finding that the national minimum wage should be increased.

Modern award rates will also be increased by 2.4% from 1 July 2016. Employers will need to ensure that they access their relevant award/s at: to ensure that they are compliant with their obligations under the Fair Work Act.

Justice Ross noted that the decision directly affects more than 1.86 million employees who are reliant on award rates of pay. Comment was also made that women continue to be over-represented among the award reliant and low paid in Australia.

The ACTU was calling for a $30 a week (4.6%) increase while the National Retailers Association and the Australian Industry Group both proposed a “modest” rise of 1.6% (which would have added only $10.50 per week to the national minimum wage).

If you need assistance in understanding how this decision affects your business or have any query regarding awards, work entitlements or employment matters in general, please contact:

Jim Rutherford
Harwood Andrews
T: 03 5226 8579

Sonia McCabe
Senior Associate
Harwood Andrews
T: 03 5226 8558