Minimum wage increase to apply in Australia from 1 July 2019

All employers should be aware of the Fair Work Commission's (FWC's) decision regarding the 2018/2019 annual wage review.

The FWC announced a 3% increase from the first full day period on or after 1 July 2019 to the:

• national minimum wage, which will increase to $740.80 per week or $19.49 per hour (an increase of $21.60 per week or $0.56 per hour); and
• minimum full time wage rates set out in modern awards. Allowances will increase in accordance with the provisions of the relevant modern award.

The FWC’s decision is lower than last year’s 3.5% increase to the national minimum wage (and lower than the 3.3% increase from the previous year). The FWC stated that the prevailing economic conditions justified a lower increase this year.

In light of the FWC’s decision, it is important that employers review their rates of pay before 1 July 2019 to ensure employees are appropriately paid in accordance with the new wage rates. There can be significant penalties against employers, and potentially directors, who fail to meet their minimum wage obligations.

For further information on how these changes may impact on your business please contact us on +61 8 9481 2040.

This article is general information only, at the date it is posted.  It is not, and should not be relied upon as, legal advice.  This article might not be updated over time and therefore may not reflect changes to the law.  Please feel free to contact us for legal advice that is specific to your situation.