The Fair Work Commission's Minimum Wage Panel today increased all Modern Award minimum wage rates and the Federal Minimum Wage by only 2.5%. CPI is currently running at 1.3% and wage growth of 2.3%.

From the first pay period commencing on or after 1 July 2015, the national minimum wage will increase to $656.90 per week, or $17.29 per hour.

Business groups proposed an increase of between 0.9% and 1.6% or $5.77 to $10.27 a week. The ACTU had asked for a 4.2% increase and an additional increase to superannuation rates.


What this means for you

Modern Awards

Employees on Modern Award rates will need to have those rates increase in line with the decision.

Annualised Salaries and Individual Flexibility Agreements

Employees on Individual Flexibility Agreements, will need to have their rates reviewed to ensure employees remain "better off overall" when compared to the new Modern Award rates.

Enterprise Agreements

Enterprise Agreement minimum base rates need to be reviewed to ensure that they remain at least equal to the new Modern Award rates.

Allowances

Many Modern Award allowances are expressed as a percentage of the "standard rate". These allowances will therefore need increase in line with the increase in the standard rate.