Minimum Wage Increase 1 July 2018
From 1 July 2018 a 3.5% increase will apply to the minimum wage. This announcement from the Fair Work Commission will take effect from the first full pay period after 1 July 2018.
The new national minimum wage will be set at $719.20 per week, or $18.93 per hour from 1 July 2018.
These changes apply to employees who have their pay rates through the national minimum wage, a modern award or registered agreement which utilises the national award scheme.
The awards are currently being updated by the Fair Work Commission and will be available in time for the 1 July cutover date. If you use payroll tools like Tanda, these awards will be automatically updated in the software for you.
The Fair Work Commission’s award search tool can be found at this link if you are unsure what applies in your business.
Evolve does the hard work for you:
If you are a client of Evolve and we look after your payroll, we will contact you around 1 July to confirm employee classifications and rates. We will then update your Xero file to reflect the changes.
If you need assistance with your payroll, please talk to your Evolve Manager before your first pay run in July.
How are award decisions reached?
The Fair Work Act 2009 requires an expert panel to convene every year for annual wage reviews – to consider the national minimum wage, modern award minimum wages in order to set, vary or revoke the current award wage rates. The panel takes into account many factors such as:
- Living standards amongst low paid workers
- The competitiveness and current state of the Australian economy
- Employment growth statistics and national inflation figures
- Increasing workforce participation through social inclusion
- The principal of equal remuneration for work provided
- Employees with a disability, or Junior employees training arrangements to ensure they receive fair wages.
- The concept of providing higher remuneration for overtime, unpredictable hours or irregular shifts, working weekends, public holidays and shift work.
- The impact on business including employment costs, productivity, and the regulatory burdens
The decisions this panel takes impacts an estimated 2.3 million Australian workers, or 22.7% of all Australian employees.
Don’t hesitate to contact Evolve Online Bookkeeping to help you with all your bookkeeping needs.