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Minimum wage increase 01 July 2016

The Fair Work Commission has announced a minimum wage increase by 2.4%
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Minimum wage increase 01 July 2016

1 June 2016

The Fair Work Commission has announced a minimum wage increase by 2.4% from 01 July 2016. The rise is $15.80 a week more than last year’s weekly wage of $656.90, and well above the inflation rate of 1.3%. 

How will this affect your business?

Over a 52-week period, this leaves businesses paying $821.60 more a year per employee on the minimum wage.

This increase will apply to any employee who gets their pay rates from:

  •  the national minimum wage
  • a modern award
  • a registered agreement (in some cases)
Most employees are covered by an award. Award rates will increase by 2.4%. The new national minimum wage of $672.70 per week or $17.70 per hour applies to employees who aren’t covered by an award or agreement.

What happens next?

The Fair Work Commission will issue draft determinations and orders about how this decision affects each modern award.

Unsure of your obligations?

The changes will take place at the start of the new financial year on July 1, which is the deadline for adjusting wages for those earning the minimum amount. With over 1.8 million people on minimum wage in Australia our Workplace Advice Line can help you understand your obligations as an employer, and give further clarification on Modern Awards.

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