30 May 2018-19 Annual Wage Decision
by Graham Lilleyman
The Fair Work Commission has handed down the 2018-19 Annual Wage Review Decision.
The federal minimum wage and all Award base rates of pay will increase by 3%. This equates to an increase of $21.60 per week to $740.80 for employees on the national minimum wage. In hourly rate terms the increase is $0.57 cents per hour for permanent employees. The 3% increase must also be applied to each wage classification in each Award and as such, the amount of the increase will be higher than the minimum increase for Award classifications which are set at higher than the minimum wage. The weekly Award rate of pay for each classification will be rounded to the nearest 10 cents. The new federal minimum hourly rate is $19.49 per hour. The increase in wages will flow on to employees that are less than 21 years of age proportionally depending on the junior worker provisions that are relevant to those employees.
The increase has effect from the first pay period commencing on or after 1 July 2019.
Employers are reminded that they are legally obliged to comply with minimum wage and/or Award obligations and there are severe penalties for non-compliance.
Employers using enterprise bargaining agreements or the old Australian Workplace Agreements should also ensure that they have their arrangements reviewed, because whilst awards do not generally have application to businesses that have agreements, the base rates of pay under Agreement must comply with your obligations under section 206 of the Fair Work Act 2009.
If you would like your wage rates reviewed, please contact ESSA on 08 9240 4230. Consulting charges will apply.