The Fair Work Commission's panel for annual wage reviews released its Annual Wage Review 2013-2014 decision yesterday, 4 June 2014.
The decision provides that minimum award wages will increase across the board by 3% effective 1 July 2014.
This decision will result in the following increases to the Federal minimum wage rates:
- Weekly minimum wage: from $622.20 to $640.90 (increase of $18.70)
- Hourly minimum rate: from $16.37 to $16.87 (increase of 50c)
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.
A casual loading of 25 per cent for award/agreement free employees will also apply from 1 July 2014 (an increase of 1% from last year's casual loading for award/agreement free employees).
Overall, the Panel found that the moderate increase in minimum wages was justified given the sound performance and outlook of Australia’s economy.
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 2014.