The Fair Work Commission has announced an increase to national minimum wages by 3% for the 2019/2020 Financial Year. This increase applies to the National Minimum wage as well as Modern Award minimum wages.
What date do these changes take effect?
The increase to minimum wages will take effect from your employee’s first pay period on or after the 1st of July 2019.
Who do these changes apply to?
The changes will apply to any National System Employer who is covered by the National Minimum wage and/or an applicable national Modern Award (generally PTY LTD companies).
It doesn’t apply to employers who are covered by the state system and state legislation (generally Partnerships and Sole Traders).
National System Employers who are covered by a Registered Agreement will still be subject to the national minimum wages as the base pay rate in the Registered Agreement can’t be less than the base pay rate in the relevant Modern Award or the National Minimum Wage. Where the rate provided for in a Registered Agreement falls below the national minimum wage or any applicable Modern Award minimum wage, then the higher rate will apply to these employees.
What do I need to do?
Employers should review the current pay rates of their existing employees prior to the first pay period in July and compare the current rates with the new rates provided by Fair Work. The new wage rates will normally be available from Fair work on or just before the 1st of July 2019.
If any of your employees are identified as being paid below the new national minimum wage or relevant Award minimum wage then you must ensure their wage rate is increased to, or above, the new minimum rate by their first pay period in July 2019.
If any of your employees are identified as already being paid above the new national minimum wage or relevant Award minimum wage, then no action will be required. You may wish to award these employees with a pay increase at this time based on CPI or on performance, however legally no action is required and these type of pay increases will be discretionary.
The new national minimum wage will be $19.49 per hour, however you may be covered by a Modern Award that provides for a higher minimum wage rate dependent upon your employee’s occupation or industry. Employers must ensure they comply with both the national minimum wage and any applicable Modern Award minimum wages which may provide for a higher rate.
Casual employees must be provided with the relevant minimum wage plus a 25% loading, or as otherwise outlined in the relevant award.
Please note this is general advice provided by the Fair Work Commission. If you would like any specific advice relating to your business and Modern Awards covering your staff, please get in contact with us at All 4 People by emailing email@example.com