SBDC e-news – July 2016 Minimum wage

Increases now in place

If you’re an employer, you need to be aware that increases to award rates, and the State and National minimum wage rate, are effective from the first full pay period starting on or after 1 July 2016.

For those businesses covered by the federal FairWork system the 2.4 per cent increase will apply to all employees who get their pay rates from a modern award (most employees are covered by an award), the national minimum wage, or a registered agreement (this is only in certain cases).

The increase does not apply to employees who are already getting paid more than the new award rate applicable under their award or registered agreement.

In most cases, employees get their pay rates from an award or enterprise agreement, but if there is no award or enterprise agreement that covers an employee’s job, they are entitled to the national minimum wage.

As of 1 July 2016, the new national minimum wage is $672.70 (up from $656.90) per week or $17.70 per hour (up from $17.29).

For those businesses covered by the State Industrial Relations system, there has also been an increase to the State minimum wage. This 1.9 per cent increase brings the State minimum wage to $692.90 per week.

The pay tools on the Fair Work Ombudsman website have been updated with the new pay rates for each award, so you can use the Pay Calculator to work out how much to pay your affected employees.

To confirm which industrial relations system applies to your business or for more information on new minimum wage rates, see Department of Commerce.

For more information about employing others, or rates of pay, visit Fairwork