The Fair Work Commission's panel for annual wage reviews released its Annual Wage Review 2015-2016 decision today, 31 May 2016.
The decision provides that minimum award wages will increase across the board by 2.4%, effective 1 July 2016.
This decision will result in the following increases to Federal minimum wage rates:
- Weekly minimum wage: from $656.90 to $672.70 (increase of $15.80)
- Hourly minimum rate: from $17.29 to $17.70 (increase of 41 cents)
Otherwise, the percentage increase will apply to the minimum rates of pay contained in modern awards. Increases to minimum weekly wages will be rounded to the nearest 10 cents.
In fixing the increase at 2.4% (down on last years 2.5% increase), the Panel observed all measures of inflation and wages growth to be at historically low levels, but that the general economic climate was good, providing an opportunity for a modest increase.
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 2016.