On the back of the Fair Work Commission’s historic decision to cut penalty rates in the retail and hospitality sector, the Fair Work Commission’s Minimum Wage Panel today increased all Modern Award minimum wage rates and the Federal Minimum Wage by 3.3%.
From the first pay period commencing on or after 1 July 2017, the National Minimum Wage will increase to $18.29 per hour, or $694.90 per week for full time hours. This increase will apply to workers in all sectors, including Hospitality and Tourism, who are
· On minimum wage; or
· Under a modern award; and
· To some registered agreements
What this means for you
A) If your staff are currently paid under an award, you will need to increase these rates by 3.3% from the 1st of July.
B) Contracts for annualised salaries, as well as enterprise agreements, will need to be reviewed to ensure that the minimum base rates in the EA remain at least equal to the new Modern Award rates, or they continue to exceed the new minimum wage. Contracts and agreements must remain "better off overall".
C) Any modern award allowances which are designated as a percentage of the 'standard' rates of pay will also need to be increased.
D) The High Income Threshold will also increase from 1st of July. Any employers who sidestep Award conditions by using High Income Guarantees will need to check their agreed terms, to ensure they remain compliant and above the new threshold