The Fair Work Commission has released its annual wage review and has increased the minimum wage by 2.5% which equates to an extra $16 per week for full time employees.

The new weekly minimum wage is $656.90 (or $17.29 per hour) which is up from $640.90.The increased minimum wage takes effect on 1 July 2015.

From 1 July 2015, employers will need to ensure that they have applied the new minimum wage to employees, subject to any requirements of the relevant modern award.

If an employer fails to pay an employee his/her entitlements, such as failing to pay an employee the minimum wage, the employer will be in breach of the Fair Work Act 2009 (Cth) and may be subject to a penalty.