The Minimum Wage Panel has released the findings of their Annual Wage Review for 2016 this afternoon. In this article, our employment law specialists outline the key changes this will have on your business and what you need to do to ensure compliance.
The Annual Wage Review was decided this afternoon. In this article, our employment team summarise the key changes.
The Minimum Wage Panel has decided that the National Minimum Wage and Award rates will increase by 2.4%. This is once again a smaller increase than the year before.
From 1 July 2016, the National Minimum Wage (NMW) will be $672.70 per week or $17.70 per hour, an increase of $15.80 per week or 0.41 cents per hour.
Adult wage rates calculated under Modern Awards will also increase from the first full pay period on or after 1 July 2016 by 2.4%, rounded up to the nearest 10 cents. This also applies to minimum wages for junior employees, employees to whom training arrangements apply, employees with disability and to piece rates.
For those junior employees not covered by an Award, the increased NMW will continue to be applied based on the following percentage amounts.
|Age (Years)||Percentage (%) of the NMW|
The Casual Loading rate remains the same at 25% with the exception of the Business Equipment Award, which provides for a loading of 21% for this calendar year, increasing each year until reaching parity with the other Awards.
The Fair Work Commission will shortly post draft determinations for each of the Modern Awards on its website which will be confirmed before the end of the financial year.
The Pay and Conditions Tool found at the Fair Work Ombudsman’s Website will be updated once the Award rates are finalised but that will only occur very shortly before 1 July 2016. If you need rates calculated in advance of that date, we are able to assist you.
The prescribed threshold for written guarantees of earnings and for the unfair dismissal jurisdictions will also increase. The Fair Work Commission will announce these increases in due course.
Practice Area: Employment