In its annual review, the Fair Work Commission’s Minimum Wage Panel has today ordered an increase of 2.6% to all minimum weekly pay rates contained in modern awards.
An equivalent increase will apply to the hourly award rates, calculated on a 38 hour week.
The federal minimum wage for award-free employees will also increase from $606.40 to $622.20 per week, or from $15.96 to $16.37 per hour: ie, an increase of $15.80 per week (or 41c per hour).
The decision takes effect from the first pay period on or after 1 July 2013.
What should you do?
From the first pay period after 1 July 2013, employers must satisfy the new minimum payment obligations for all relevant staff.
Failure to do so can lead to breaches of the Fair Work Act 2009, and the potential exposure of businesses to penalties of up to $51,000 per offence committed by a company, and up to $10,200 for individuals involved in a breach.