The Fair Work Commission has released its 2015 Annual Minimum Wage Decision on Tuesday, 2 June 2015, awarding a 2.5% increase to Award-reliant employees.
The FWC decision increases the national minimum wage to $656.90 per week, or $17.29 per hour. This constitutes an increase of $16.00 per week or 42 cents per hour being the equivalent of a 2.5% minimum wage increase. All award rates of pay will increase by 2.5% with effect from the first pay period commencing on or after 1 July 2015.
The FWC panel acknowledged the significant reduction in inflation and aggregate wages growth since the last minimum wage review, and stated that this was a factor in the more modest increase in the minimum wage.
Who is affected?
The 2015 Minimum Wage Decision applies to all employees covered by the national workplace relations system.
The Minimum Wage decision will not apply to:
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• employers who are sole traders and partnerships in Western Australia;
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• corporations in Western Australia whose main activities are not trading or financial;
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• state government public sector employers and employees (except in Victoria); and
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• some local government employers and employees.
If an employee is paid above the relevant modern award base rate of pay, provided an employee’s over-award payment still results in them being paid at least the new base rate of pay, the employer will be considered to have met their obligation with respect to the minimum wage increase.
What employers need to do
Employers have a legal responsibility to ensure that all of their employees are paid at least what they would receive under a modern award, registered agreement or national minimum wage order. We recommend a review of your payroll obligations to ensure you are meeting your responsibilities in readiness for 1 July 2015.
Should you require any assistance in reviewing your payroll obligations or if you have any questions about this wage review and its impact, please contact us.
Christine Broad, Solicitor, BlandsLaw
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