The Fair Work Commission has today announced its Annual Wage Review 2015-16 Decision.

Employers should note the following new rates that apply from 1 July 2016.

1 National minimum wage

From 1 July 2016, the national minimum wage will increase by 2.4%. This means the national minimal wage will be $672.70 per week or $17.70 per hour based on a 38 hour week.

This constitutes an increase of $15.80 per week to the current national minimum weekly rate or 41 cents per hour to the hourly rate.

2 Minimum award wage rates

Minimum wage rates in modern awards will also increase by 2.4% from 1 July 2016.

Employers should review the applicable awards to ensure ongoing compliance. For employers paying above award wages, an increase to award wages can generally be absorbed into the existing above award payment, provided that the relevant award permits this approach and that minimum award conditions are met.