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Stop Press News: National Minimum Wage Increased by 3%

By 13 June 2014 April 8th, 2019 Awards and Enterprise Agreements

Last week the Fair Work Commission increased the national minimum wage and the minimum wage rates in modern awards by 3%, compared to 2.6% last year.

From 1 July 2014, the national minimum wage will be $16.87 per hour, or $640.90 per week―an increase of $18.70 per week. The minimum wage panel said the reasons for the additional increase are:

  • there has been almost no growth in the real value of award rates over a period when other employees have had substantial wage increases
  • the living standards of award-reliant workers has deteriorated
  • there has been a recent widespread improvement in labour productivity growth
  • there have been historically low levels of real unit labour costs
  • there is an absence, in aggregate, of cost pressures from the labour market.

It was acknowledged by the minimum wage panel that the superannuation guarantee would be rising by 0.25% as of 1 July 2014 and this was considered to be a moderating factor.

The national minimum wage applies to all employees who are not covered by an award or enterprise agreement; and there are special national minimum wages for trainees, apprentices, juniors and employees with a disability.

The Fair Work Commission has also increased the loading for casual employees not covered by a modern award or enterprise agreement from 24% to 25%. However, no change has been made to the casual loadings contained in modern awards.

All employers should ensure they are ready to apply the above increases.

We will continue to bring you Stop Press News items to keep you up-to-date and informed about changes to legislation as they happen.


Contact the Author

Jodi Peters

Peters Bosel

Employment Lawyers