National Minimum Wage Increase - Avoid Underpayments

Fair Work Determines National Minimum Wage Increase

The Fair Work Commission has determined that a 3.0% increase of the national minimum wage will take effect for the first pay period on or after 1 July 2019. The increase is lower than 2018’s increase of 3.5%. Slow economic growth, low inflation and increased tax transfer payments were cited as reasons for the decision.

While the current national minimum wage is $719.20 per week, or $18.93 per hour, the new national minimum wage will be $740.80 per week, or $19.49 per hour.

The minimum wage increase includes those covered by a modern award, as such the Commission will be updating the rates of pay in each award. Those employed under an Enterprise Agreement should check the agreement to see whether the increase will affect their wages.

It is important for employers to ensure that the wage increase is passed on to their employees from 1 July 2019 to avoid underpayments to employees.

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