National minimum wage increase

The Minimum Wage Panel has today handed down its tenth minimum wage decision which increased the National Minimum Wage, together with all Modern Award minimum rates of pay, by 3%.

The Panel reasoned that while it is a lower increase than last year, it more closely reflects an adequate increase after taking into consideration Australia’s economy has performed relatively well and that employment has continued to expand.

From 1 July 2019, the National Minimum Wage will increase to $740.80 per week, or $19.49 per hour. Minimum wages under the Health Professionals and Support Services Award will also increase by 3%.

What this means for you

Employers who pay their employees at the National Minimum Wage or Modern Award rates of pay will need to apply the increase in the first full pay period commencing on or after 1 July 2019;

1.Employers who currently pay above National Minimum Wage or Modern Award rates of pay are not obliged by this decision to increase their rates of pay, but need to ensure their rates remain at least as beneficial, once the increase is applied; and

2.Employers who pay under enterprise agreements must ensure that the base rates in those agreements remain at least equal to the new minimum Modern Award rates.

Annualised Salaries and Individual Flexibility Agreements

If you are an employer who has implemented Individual Flexibility Agreements, you will need to reassess those agreements to ensure employees remain “better off overall” when compared to the newly increased Modern Award rates.

If you pay any of your employees under annualised salary arrangements you will need to conduct an audit of those annualised salaries against the new Award rates and working patterns to ensure the annual salary compensates for award entitlements.

The ADA HR Advisory Service are currently updating the wage tables for the Health Professionals and Support Services Award and aim to have the updated tables to members in the coming weeks.
If you have any questions please call phone the ADA Telephone Advisory Service on 1300 232 462.