Minimum wage increases and cuts to penalty rates explained

Minimum wage increases

The much publicised Fair Work minimum wage review came into effect on 1 July. From that date, the new national minimum wage will be $695.90 per week or $18.29 per hour.

Importantly, the 3.3% wage increase applies from the first full pay period starting on or after 1 July 2017.

Who is eligible for the wage increase?

  1. Any employee who is not covered by an award or agreement and who is paid according to the national minimum wage
  2. Employees who are covered by a modern award

If your employees are paid above award rates, they are not eligible to receive the Fair Work wage increase.

If you are unsure about whether this wage increase will affect your staff, contact End2End Business Solutions for tailored HR advice that will help your business thrive. Don’t delay! Call 02 8977 4002

Changes to penalty rates

Some penalty rates for retail and hospitality staff also changed from 1 July. The full extent of these changes will be phased in over the next 3 – 4 years – depending on the award and type of employment.

In particular, changes to public holiday penalty rates, evening work and after midnight penalties will be implemented from 1 July.

If you have any concerns regarding the way these penalty rate changes will affect your business, contact End2End Business Solutions, your outsourced HR professionals. Call us now on 02 8977 4002.