Commencing 1 July 2015 there will be an increase in the national minimum wage. Employers will need to be aware of the increased costs. This information is from the Annual Wage Review 2014-15 Order [2015] FWCFB 3500 and theAnnual Wage Review 2014-15 Statement [2015] FWCFB 3720.

Increased national minimum award wage

The national minimum wage award will increase by 2.5% and will apply from the first full pay period starting on or after 1 July 2015.

Employees on the national minimum wage will see their base wage increase to $656.90 per week or $17.29 per hour. The weekly rate is based on a 38 hour week for a full-time employee. This is a $16.00 increase per week or 0.42 cents per hour.

The minimum wages in modern awards will also increase by 2.5% from the first full pay period starting on or after 1 July 2015.

The increase will only apply to employees who receive their pay rates from the national minimum wage, a modern award or, sometimes, through a registered agreement.

Increase applies to junior employees, apprentices and employees with disability

The 2.5% increase will also apply to minimum wages in modern awards for junior employees, employees to whom training arrangements apply and employees with a disability, as well as piece rates, through the operation of the methods applying to the calculation of those wages.

In addition, the increase will apply to the calculation of the minimum wage rates for award/agreement free junior employees, employees to whom training arrangements apply and employees with a disability (whose productivity is not affected).

Allowances

The increase will also affect allowances under modern awards that are calculated on the award wage rates.