The Fair Work Commission's panel for annual wage reviews released its Annual Wage Review 2014-2015 decision yesterday, 2 June 2015.
The decision provides that minimum award wages will increase across the board by 2.5% effective 1 July 2015.
This decision will result in the following increases to the Federal minimum wage rates:
- Weekly minimum wage: from $640.90 to $656.90 (increase of $16),
- Hourly minimum rate: from $16.87 to $17.29 (increase of 42c).
Otherwise, the percentage increase will apply to the minimum rates of pay contained in awards. Increases to minimum weekly wages will be rounded to the nearest 10 cents.
In fixing the increase at 2.5% (which is 0.5% down on last year's increase), the Panel found that the reduction in inflation and aggregate wages growth weighed in as significant factors for the lower rate.
Employers should now start to review their employees' existing rates of pay to ensure compliance with minimum rates when the above changes commence on 1 July 2015.