National Minimum Wage Decision 2019

The Fair Work Commission has handed down it’s decision last week with a 3% increase to the National Minimum Wage, together with all Modern Award minimum rates of pay.  While the ACTU was calling for a $43.15 a week increase, a 3% increase delivers a $21.60 pay rise to Australian Workers.  

As an employer, you now have some jobs to complete to be in line with these changes.

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So what does this mean as an employer?

• All award rates across all Modern Awards increase by 3%.  If you are currently paying any one at the minimum entitlement under the Award, it must increase 1st July (first pay cycle after this date).
  
• 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.  This also applies if you have an EBA in place as rates cannot be lower than those contained in the relevant award.
  
• The new national minimum wage will be $740.80 per week or $19.49 per hour.  
  
• If you have Individual Flexibility Agreements in place, you will need to review these arrangements ensuring 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.

If you need assistance auditing or reviewing your current rates of pay to ensure you are on top of all your obligations, the team at HR Staff n’ Stuff are here to help!

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